Buildings and construction ― apportionment of supplies

By Tolley
Buildings and construction ― apportionment of supplies

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Buildings and construction ― apportionment of supplies
  • When do issues of apportionment need to be considered?
  • How to treat works to the fabric of a building?
  • How to treat communal areas?
  • How to treat live-work units?

This guidance note provides an overview of issues of apportionment in relation to buildings and construction. For apportionment more broadly, see the Apportionment methods guidance note.

For in-depth commentary on legislation and case law around apportionment in the context of relief for buildings and construction, see De Voil Indirect Tax Service V4.231V4.242. For apportionment of consideration generally, see De Voil Indirect Tax Service V3.156.

When do issues of apportionment need to be considered?

Sometimes when a building is being constructed or converted, part of the works will qualify for relief and part will not. Likewise, sometimes when selling the freehold or granting a long lease in a building, part of the sale or grant will be zero-r

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