Commentary

V4.233 Major interests—new buildings

Part V4 Exemption, zero-rating and reduced rates

V4.233 Major interests—new buildings

V4.233 Major interests—new buildings

This paragraph examines the zero-rating extended to the first grant of a major interest in certain new buildings under VATA 1994, Sch 8, Group 5, item 1(a).

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

VATA 1994, Sch 8, Group 5, item 1(a) zero-rates the first grant by a person constructing a building which is either:

  1.  

    •     designed as a dwelling or number of dwellings (see V4.232BA)

  2.  

    •     intended for use solely for a relevant residential purpose (see V4.232BB)

  3.  

    •     intended for use solely for a relevant charitable purpose (see V4.232BC)

of a major interest in, or in any part of, the building, dwelling or its site.

The following notes to VATA 1994, Sch 8, Group 5 are relevant to the scope of this relief:

  1.  

    •     VATA 1994, Sch 8, Group 5, note 1 provides that the term 'grant' includes an assignment or surrender

  2.  

    •     VATA 1994, Sch 8, Group 5, note 2 defines a building designed as a dwelling or number of dwellings which is set out at V4.232BA

  3.  

    •     VATA 1994, Sch 8, Group 5, note 4 defines a relevant residential purpose which is set out at V4.232BB

  4.  

    •     VATA 1994, Sch 8, Group 5, note 5 sets out when a number of businesses can be considered together as intended for use for relevant residential purposes, for which see V4.232BB

  5.  

    •     VATA 1994, Sch 8, Group 5, note 6 defines a relevant charitable purpose which is set

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