Value Added Tax Act 1994

Conversion of buildings for use as dwelling etc U.K.

[F1 6. (1) An option to tax has no effect in relation to any grant made to a person (“the recipient”) in relation to a building or part of a building if the recipient certifies that the building or part of the building is intended for use—

(a) as a dwelling or number of dwellings, or

(b) solely for a relevant residential purpose.

(2) The recipient must give the certificate to the person making the grant (“the seller”)—

(a) within the period specified in a public notice, or

(b) if the seller agrees, at any later time before the seller makes a supply to which the grant gives rise.

(3) The recipient may give the certificate to the seller only if the recipient—

(a) intends to use the building or part of the building as mentioned above,

(b) has the relevant conversion intention, or

(c) is a relevant intermediary.

(4) The recipient is a relevant intermediary if—

(a) the recipient intends to dispose of the relevant interest to another person, and

(b) that other person gives the recipient a certificate stating that the other person has the relevant conversion intention or the relevant disposal intention.

(5) For this purpose a person has the relevant disposal intention if—

(a) the person intends to dispose of the relevant interest to a third person, and

(b) the third person gives a qualifying certificate to the person.

(6) A person (P) gives a qualifying certificate to another if P gives a certificate to that other person stating that P has the relevant conversion intention or intends to dispose of the relevant interest to another person (Q) who has given a certificate to P stating—

(a) that Q has the relevant conversion intention, or

(b) that Q intends to dispose of the relevant interest to another person who has given a qualifying certificate to Q,

and so on (in the case of further disposals of the relevant interest).

(7) In this paragraph—

• “the relevant conversion intention”, in relation to a person, means an intention of the person to convert the building or part of the building with a view to its being used as mentioned above, and

• “the relevant interest”, in relation to any interest in the building or part of the building to which the grant gives rise, means the whole of that interest.

(8) For the purposes of this paragraph a building or part of a building is not to be regarded as intended for use as a dwelling or number of dwellings at any time if there is intended to be a period before that time during which it will not be so used (but disregarding use for incidental or other minor purposes).

(9) For the purposes of this paragraph the reference to use solely for a relevant residential purpose is to be read without regard to Note (12) of Group 5 of Schedule 8 (which would otherwise apply as a result of paragraph 33 of this Schedule).

(10) The Commissioners may publish a notice for the purposes of this paragraph—

(a) preventing a person from giving any certificate under this paragraph unless the person meets conditions specified in the notice,

(b) specifying the form in which any certificate under this paragraph must be made, and

(c) specifying any information which any certificate under this paragraph must contain.]

Textual Amendments

F1 Sch. 10 substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2008 (S.I. 2008/1146), arts. 1(1), 2 (with Sch. 2)