Commentary

V4.232H Conversion, reconstruction and alteration

Part V4 Exemption, zero-rating and reduced rates

V4.232H Conversion, reconstruction and alteration

V4.232H Conversion, reconstruction and alteration

This paragraph examines the meaning of 'the conversion, reconstruction or alteration of an existing building' which is excluded from the 'construction of a building' for the purposes of zero-rating under VATA 1994, Sch 8, Group 5, by VATA 1994, Sch 8, Group 5, note 16(a).

VATA 1994, Sch 8, Group 5, note 18 is also relevant in this context as it sets out when an existing building ceases to exist (see under the relevant heading below).

For an overview of the scope of zero-rating under VATA 1994, Sch 8, Group 5 more broadly, see V4.231.

For the scope of zero-rating for the construction of a building, see V4.238.

For the scope of reduced-rating for certain residential conversions and the renovation and alteration of certain dwellings, see V4.411 and V4.413 respectively.

Whether an 'existing building'—conversion, reconstruction or alteration (zero-rating)

It is necessary to establish whether or not there was an existing building on the land when the works commenced to determine if the exclusion from zero-rating for 'the conversion, reconstruction or alteration of an existing building' (as detailed above) is in point.

VATA 1994, Sch 8, Group 5, note 18 sets out that a building only ceases to be an existing building when either:

  1.  

    •     demolished completely to ground level

  2.  

    •     the part remaining above ground level consists of no more than a single facade or where a corner site, a double facade, the retention of which is a condition or requirement of statutory planning consent or similar permission

A

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