The Value Added Tax (Self-supply of Construction Services) Order 1989

3.—(1) Where a person, in the course or furtherance of a business carried on by him, for the purpose of that business and otherwise than for a consideration, performs any of the following services, that is to say–

(a) the construction of a building; or

(b) the extension or other alteration of, or the construction of an annexe to, any building such that additional floor area of not less than 10 per cent of the floor area of the original building is created; or

(c) the construction of any civil engineering work; or

(d) in connection with any such services as are described in sub-paragraph (a), (b) or (c) above, the carrying out of any demolition work contemporaneously with or preparatory thereto,

then, subject to each of the conditions specified in paragraph (2) below being satisfied, those services shall be treated for the purposes of the Act as both supplied to him for the purpose of that business and supplied by him in the course or furtherance of it.

(2) The conditions mentioned in paragraph (1) above are that–

(a) the value of such services is not less than £100,000; and

(b) such services would, if supplied for a consideration in the course or furtherance of a business carried on by a taxable person, be chargeable to tax at a rate other than nil.

(3) The preceding provisions of this article shall apply in relation to any bodies corporate which are treated for the purposes of section 29 of the Act as members of a group as if those bodies were one person, but anything done which would fall to be treated by virtue of this Order as services supplied to and by that person shall be treated as supplied to and by the representative member.