Value Added Tax

Exemption ― overview ― items that are exempt from VAT

Produced by Tolley
  • 22 Dec 2021 18:48

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

  • Exemption ― overview ― items that are exempt from VAT
  • List of supplies that are exempt from VAT
  • Group 1 ― land
  • Main exclusions
  • Group 2 ― insurance
  • Group 3 ― postal services
  • Main exclusions
  • Group 4 ― betting, gaming and lotteries
  • Main exclusions
  • Group 5 ― finance
  • More...

Exemption ― overview ― items that are exempt from VAT

List of supplies that are exempt from VAT

The goods or services that are exempt from VAT are listed under various group headings within VATA 1994, Sch 9.

It is important to remember that not all supplies that come within a heading will be exempt from VAT. For example, income from the placing of bets is consideration for an exempt supply under Group 4, but income generated by a fixed odds betting machine is standard rated.

There are 16 group headings within Schedule 9, which are listed below, along with the relevant guidance note giving further analysis about each heading.

For a video overview of Schedule 9, see the Schedule 9 ― exemptions video.

Group 1 ― land

The grant of any interest in or right over land or of any licence to occupy land, In relation to land in Scotland, any personal right to call for or be granted any such interest or right.

Main exclusions

The grant of the fee simple (freehold) in a building which has not been completed and which is neither designed as a dwelling(s), intended for relevant residential purpose or a relevant charitable purpose.

The grant of the fee simple in a new (ie under three years old) building which is neither designed as a dwelling nor intended for use as a relevant residential purpose or a relevant charitable purpose after the grant.

The grant of the fee simple in a new civil engineering work or an uncompleted civil engineering work.

A supply made pursuant

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

Think Tax.
Think Tolley.

Critical, comprehensive and up-to-date tax information

TAKE A FREE TRIAL

Popular Articles

Class 2 national insurance contributions

Class 2 and Class 4 NIC are payable by self-employed earners and partners in a partnership. This guidance note considers Class 2 contributions. For Class 4 contributions, see the Class 4 national insurance contributions guidance note.Class 2 NIC arise where a self-employed individual has income

19 Oct 2021 22:34 | Produced by Tolley Read more Read more

Married couple’s allowance

The married couple’s allowance (MCA) is only available if one of the two spouses or civil partners was born before 6 April 1935. This means that one member of the couple must be at least 87 years old on 5 April 2022 to qualify for an allowance in the 2021/22 tax year.There is a distinction in the

07 Jan 2022 08:41 | Produced by Tolley Read more Read more

Employer Financed Retirement Benefit Schemes (EFRBS)

IntroductionA pension scheme that is not a registered scheme is known as an EFRBS. Since April 6 2006, the distinction between what were approved and unapproved pension schemes has been replaced with a distinction between registered and unregistered schemes.The position as it applies with effect

22 Dec 2021 14:33 | Produced by Tolley in association with John Hayward Read more Read more