VAT and Property

Ann L. Humphrey is a solicitor with an independent tax practice specialising in indirect tax.

• 1 Introduction1.1 Overview of the UK VAT rules for property transactions and the property sector1.2 Definitions2 The General VAT Rules as they apply to Property-Related Supplies2.1 Goods or services?2.2 Time of supply2.3 The value of the supply (the amount on which VAT is chargeable)2.4 Supplies spanning change of VAT rate or change in liability of a supply3 The VAT Liability of the Most Common Property-Related Supplies3.1 Exempt or taxable at the standard rate?3.2 Treatment of the most common supplies of land and buildings3.3 Supplies of and under leases3.4 Commonhold3.5 Joint ownership3.6 Beneficial interests4 VAT Reliefs for Supplies of Dwellings4.1 Meaning of 'dwelling'4.2 Case law on meaning of 'dwelling'4.3 Zero-rating for new dwellings – the details of the relief4.4 VAT reliefs for conversions into dwellings5 VAT Refund Schemes5.1 DIY builders scheme ‒ introduction5.2 Details of the DIY builder's refund scheme5.3 Amounts qualifying for refund5.4 The form of claims by DIY builders6 Buildings used for a Relevant Residential or Relevant Charitable Purpose6.1 Introduction6.2 Use solely for a relevant residential purpose6.3 Use solely for a relevant charitable purpose6.4 Certificates6.5 Claw-back on change of use7 Property Transactions Involving Housing Associations – the Special Rules7.1 Zero-rating of conversions7.2 Claw-back on change of use7.3 Disapplication of the option to tax8 Reliefs for Protected Buildings8.1 Introduction8.2 Zero-rating for substantially reconstructed protected buildings from 1 October 20129 Supplies of Commercial Property and the Option to Tax9.1 Introduction to the option to tax9.2 Overview of the main points about the option to tax9.3 The UK legislation relating to the option to tax9.4 Effect of the option to tax9.5 Scope of the option to tax9.6 Opting to tax – the two-stage process9.7 Day from which the option takes effect9.8 Duration of option to tax9.9 Revocation of the option to tax9.10..... Real estate elections9.11..... Cases where HMRC's permission is required before exercising the option9.12..... Exclusions from the effect of the option to tax9.13..... The option to tax and VAT groups9.14..... Option to tax: anti-avoidance provisions9.15..... Effect of the option to tax on input tax recovery9.16..... Timing of the exercise of the option to tax – some practical points10 Supplies in the Building Industry10.1..... Introduction10.2..... Table outlining reliefs10.3..... Zero-rating of the construction of certain buildings10.4..... Zero-rating of certain goods and services supplied to a disabled person10.5..... Reduced rate for qualifying conversions10.6..... Reduced rate for certain residential renovations and alterations10.7..... Relief for building materials etc.10.8..... Self-supply of construction, alteration and demolition services10.9..... Time of supply of building services10.10.... Self-billing and authenticated receipts10.11.... Summary of VAT liability of supplies of building services11 Partial Exemption and the Capital Goods Scheme11.1..... Effect of being partially exempt11.2..... Methods of apportionment11.3..... De minimis limits11.4..... Capital goods scheme12 Transfer of a Business as a Going Concern ('TOGC')12.1..... The legal framework for TOGC treatment12.2..... The general conditions for TOGC treatment12.3..... TOGCs: Some drafting points12.4..... General condition (1): business assets transferred as part of a going concern12.5..... General condition (2): assets to be used by the transferee in carrying on the same kind of business12.6..... General condition (3): transferee must be a 'taxable person' or, as a result of the TOGC, become a taxable person12.7..... General condition (4) Transfer of part of a business capable of separate operation12.8..... Additional conditions for certain property assets to be included in a TOGC12.9..... Property letting and TOGCs12.10.... TOGCs and transfers to nominees12.11.... TOGCs: summary of main VAT consequences13 Property Supplies relating to Caravans and Caravan Parks13.1..... Caravan park works13.2..... Caravan pitches13.3..... Caravan rentalHMRC Forms and GuidanceRevenue & Customs BriefsVAT FormsVAT Information SheetsVAT NoticesINDEXCD-ROM:HMRC forms and guidance