Commentary

V4.238 Construction services—new buildings

Part V4 Exemption, zero-rating and reduced rates

V4.238 Construction services—new buildings

V4.238 Construction services—new buildings

This paragraph examines the zero-rating that applies to the construction of certain buildings.

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

VATA 1994, Sch 8, Group 5, item 2(a) zero-rates the supply in the course of the construction of either:

  1.  

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

  2.  

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

  3.  

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

of any services related to the construction other than the services of an architect, surveyor or any person acting as a consultant or in a supervisory capacity.

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

  1.  

    •     VATA 1994, Sch 8, Group 5, note 2 which defines a building designed as a dwelling or number of dwellings. For details, see V4.232BA.

  2.  

    •     VATA 1994, Sch 8, Group 5, note 4 which defines a relevant residential purpose. For details, see V4.232BB.

  3.  

    •     VATA 1994, Sch 8, Group 5, note 5 which provides further detail on when buildings are deemed to be used for a relevant residential purpose. For details, see V4.232BB.

  4.  

    •     VATA 1994, Sch 8, Group 5, note 6 which defines a relevant charitable purpose. For details, see V4.232BC.

  5.  

    •     VATA 1994, Sch 8, Group 5, note 10(iii) which provides that where part of a building is designed as a dwelling or number

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