V4.232G Major interests

This paragraph examines the meaning of a major interest in the context of zero-rating under VATA 1994, Sch 8, Groups 5 and 6. For an overview of the scope of zero-rating under these Groups , see V4.231.

Broadly, zero-rating applies to the grant, in specified circumstances, of a major interest in a building or its site (for details of the scope of zero-rating for grants of major interests, see V4.233–V4.235.

The definition of a major interest can be found in VATA 1994, s 96(1). It means either:


    •     the fee simple


    •     (other than in Scotland) a tenancy for a term certain exceeding 21 years


    •     (in relation to Scotland) the interest of the owner, or the lessee's interest under a lease for a period of not less than 20 years

The 'fee simple' (freehold)1:


    •     (in relation to Scotland) means the interest of the owner


    •     (in relation to Northern Ireland) includes the estate of a person who holds land under a fee farm grant


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