Commentary

V4.232BB Relevant residential purposes (RRP)

Part V4 Exemption, zero-rating and reduced rates

V4.232BB Relevant residential purposes (RRP)

V4.232BB Relevant residential purposes (RRP)

This paragraph examines when a building is intended for use solely for a relevant residential purpose. The term is used in VATA 1994, Sch 8, Group 5 and has relevance for whether a supply will qualify for zero-rating under this provision. For an overview of the scope of zero-rating under this Group, see V4.231.

VATA 1994, Sch 8, Group 5, note 4 defines use for a relevant residential purpose as use as any of the following:

  1.  

    •     a home or other institution providing residential accommodation for children

  2.  

    •     a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs, or past or present mental disorder

  3.  

    •     a hospice

  4.  

    •     residential accommodation for students or school pupils

  5.  

    •     residential accommodation for members of any of the armed forces

  6.  

    •     a monastery, nunnery or similar establishment

  7.  

    •     an institution which is the sole or main residence of at least 90% of its residents

However, a building does not fall within this description if it is for use as any of the following:

  1.  

    •     a hospital

  2.  

    •     a prison or similar institution

  3.  

    •     an hotel, inn or similar establishment

VATA 1994, Sch 8, Group 5, note 5 provides that where a number of buildings are constructed at the same time and on the same site and are intended to be used together as a unit solely for a relevant residential

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