V3.444 Goods installed in new or converted buildings
It should be noted that a charge to tax on goods incorporated in a residential building or its site can arise by two means.
Firstly, where the goods have been incorporated in the building by a building contractor or subcontractor. In such cases, zero-rating under VATA 1994 Sch 8 Group 5 item 4 or Group 6 item 3 may not apply, either by virtue of the nature of the goods or the manner in which they are supplied. For the exclusion from zero-rating under these provisions, see V4.242.
Secondly, where the claimant has purchased, acquired or imported the goods concerned in circumstances where there is no entitlement to input tax credit. The relevant provisions in such circumstances are described below.
An order made under VATA 1994 s 25(7) provides that tax on goods incorporated in a building or its site is excluded from credit where all of the conditions set out below are met. The conditions referred to are as follows1—
(i) The claimant is a person constructing a building, or effecting works to any building, for the purpose of granting a major interest in all or any part of it or its site which is of a description in VATA 1994 Sch 8
The terms “person constructing a building” and “major interest” are described in V4.231. It appears that input tax is excluded from credit regardless of whether goods are incorporated in the building during the course of its construction or during the period between