The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
The VAT treatment of transactions relating to land and property is very complex. Care needs to be taken when determining the correct VAT treatment. This guidance note is intended to provide you with a brief overview of the main points that need to be considered, as well as links to other guidance notes that provide a more in depth analysis of the points raised.
More detailed information on land and property transactions can be found in VATLP01000
The following section provides a brief overview of the most common types of land and property transactions.
See also VAT and Property, para 2.29.
For VAT purposes, the term 'land' includes any of the following:
civil engineering works
trees and plants
waterways, ways, watercourses and commons
any other structure or natural object in, under or over 'land' that continues to remain attached to it (ie certain fixtures and fittings)
VATA 1994, Sch 4, parah 4; VATLP02200
A business makes a supply of land if it grants one of the following:
a grant of a freehold or leasehold interest in the land
an assignment of a lease by an existing tenant to a new tenant
a surrender of an interest in land to the person who granted the interest
An interest in land includes a 'legal' or 'beneficial' interest in the land. A legal interest usually constitutes some formal ownership of an interest or right of land (ie a freeho
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