SCHEDULES
F1SCHEDULE 10 BUILDINGS AND LAND
PART 2RESIDENTIAL AND CHARITABLE BUILDINGS: CHANGE OF USE ETC
36F2Disposal of interest or change of use following relevant zero-rated supply
1
Paragraph 37 applies on each occasion during the relevant period when—
a
there is an increase in the proportion of the relevant premises falling within sub-paragraph (2) or (3), and
b
as a result, the proportion of the relevant premises so falling (“R2”) exceeds the maximum proportion of those premises so falling at any earlier time in the relevant period (“R1”).
2
The relevant premises fall (or part of the relevant premises falls) within this sub-paragraph if P has, since the beginning of the relevant period, disposed of P’s entire interest in the relevant premises (or part).
3
The relevant premises fall (or a part of the relevant premises falls) within this sub-paragraph if—
a
those premises do not (or that part does not) fall within sub-paragraph (2), and
b
those premises are (or that part is) being used for a purpose that is neither a relevant residential purpose nor a relevant charitable purpose.
4
Sub-paragraph (5) applies where—
a
only a proportion of the use of the relevant premises (or the use of a part of those premises) is for a relevant residential purpose or a relevant charitable purpose, and
b
that use is not confined to a part of those premises (or of that part) which is used solely for a relevant residential purpose or a relevant charitable purpose.
5
Where this sub-paragraph applies, sub-paragraph (3) applies as if—
a
the same proportion of the relevant premises (or part) were being used for a relevant residential purpose or a relevant charitable purpose, and
b
the remainder of the relevant premises (or part) were being used for a purpose that is neither a relevant residential purpose nor a relevant charitable purpose.
6
Where P is a charity using the relevant premises (or a part of the relevant premises) as a village hall or similarly in providing social or recreational facilities for a local community the premises are (or the part is) treated as being used for a relevant charitable purpose whether or not any person in occupation is using the premises (or part) for a relevant charitable purpose.
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)