Exemption ― overview ― items that are exempt from VAT

Produced by Tolley
Exemption ― overview ― items that are exempt from VAT

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...

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.

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 to a developmental tenancy, developmental lease or developmental licence.

The grant of a licence or interest to take game or fish.

The supply of hotel accommodation, licence to occupy holiday accommodation, parking facilities, seasonal caravan pitches, camping facilities.

The grant of a right to fell / remove timber.

The grant of a right to occupy a box, seat or other accommodation at a sports ground, theatre or similar.

The grant of facilities for housing, storage, mooring of an aircraft, ship, boat or other vessel.

The grant of facilities for playing any sport or participating in any physical recreation.

The grant of facilities for the

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