Commentary

V7.376 Sale of new buildings with a mixed use

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.376 Sale of new buildings with a mixed use

Part V7 Tax planning | Commentary

V7.376 Sale of new buildings with a mixed use

Consider the following situation: a property developer builds a new property on land that he has bought, which comprises a shop on the ground floor and a first floor flat. The shop is clearly for a commercial purpose and therefore standard-rated as the sale of a new non-qualifying building. The sale of the flat is zero-rated as the first sale of a new dwelling.

In many cases, it is possible that the two separate properties will be bought by different people, in which case the VAT treatment will be straightforward, ie zero-rating

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