Commentary

V4.115C Land subject to an option to tax—scope and notification of an option

Part V4 Exemption, zero-rating and reduced rates

V4.115C Land subject to an option to tax—scope and notification of an option

V4.115C Land subject to an option to tax—scope and notification of an option

This paragraph examines both the scope of an option to tax as well as notification of the option to tax and related considerations. For an introduction to the option to tax more broadly, see V4.114.

Land in relation to which the option has effect1

An option has effect in relation to the particular land specified in the option. 'Land' includes buildings and other structures, land covered with water, and any estate, interest, easement, servitude or right in or over land2.

An option in respect of any land or description of land extends to any building constructed or (subject to the exclusion set out under 'voluntary exclusion' described in V4.115A above) to be constructed on the land. Similarly an option made in relation to all or part of a building or planned building has effect in relation to the whole of the building and all the land within its curtilage. Thus, with the exception of the 'voluntary exclusion', it is not possible to make an option in respect of land without also electing in respect of any buildings situated thereon, or vice versa.

The following are regarded as a single building for this purpose3:

  1.  

    •     buildings linked internally or by a covered walkway (other than a walkway to which the general public has reasonable access), and

  2.  

    •     complexes consisting of a number of units grouped around a fully enclosed concourse

Buildings are not regarded as a single building if4:

  1.  

    •     the internal

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