2. For Note (7) in Group 8 of Schedule 5 to the Value Added Tax Act 1983(1) there shall be substituted the following–
“(7) The grant of an interest in, or in any part of–
(a)a building designed as a dwelling or number of dwellings; or
(b)the site of such a building,
is not within item 1 if–
(i)the interest granted is such that the grantee is not entitled to reside in the building, or part, throughout the year; or
(ii)residence there throughout the year, or the use of the building or part as the grantee’s principal private residence, is prevented by the terms of a covenant, statutory planning consent or similar permission.”
(1)
Group 8 was amended by paragraph 1 of Schedule 3 to the Finance Act 1989 (c. 26).