Value Added Tax Act 1994

Group 7 — Renovation and alteration of dwellings U.K.

Textual Amendments

F1 Sch. 7A inserted (11.5.2001 with effect as mentioned in s. 99(7)(a) of the amending Act) by 2001 c. 9, s. 99(5)(7)(a), Sch. 31 Pt. 1 para. 1

ITEM NO.

Valid from 11/05/2001

1 The supply, in the course of the renovation or alteration of a single household dwelling, of qualifying services related to the renovation or alteration.

Valid from 11/05/2001

2 The supply of building materials if—

(a) the materials are supplied by a person who, in the course of the renovation or alteration of a single household dwelling, is supplying qualifying services related to the renovation or alteration, and

(b) those services include the incorporation of the materials in the dwelling concerned or its immediate site.

NOTES:

Valid from 11/05/2001

Supplies only partly within item 1 U.K.

1 (1) Sub-paragraph (2) applies where a supply of services is only in part a supply to which item 1 applies.

(2) The supply, to the extent that it is one to which item 1 applies, is to be taken to be a supply to which item 1 applies.

(3) An apportionment may be made to determine that extent.

Valid from 11/05/2001

Meaning of “alteration” and “single household dwelling” U.K.

2 For the purposes of this Group—

• “alteration” includes extension;

• “single household dwelling” has the meaning given by paragraph 4 of the Notes to Group 6.

Items 1 and 2 only apply where dwelling has been empty for at least 3 years U.K.

3 (1) Item 1 or 2 does not apply to a supply unless either of the empty home conditions is satisfied.

(2) The first “empty home condition” is that the dwelling concerned has not been lived in during the period of 3 years ending with the commencement of the relevant works.

(3) The second “empty home condition” is that—

(a) the dwelling was not lived in during a period of at least 3 years;

(b) the person, or one of the persons, whose beginning to live in the dwelling brought that period to an end was a person who (whether alone or jointly with another or others) acquired the dwelling at a time—

(i) no later than the end of that period, and

(ii) when the dwelling had been not lived in for at least 3 years;

(c) no works by way of renovation or alteration were carried out to the dwelling during the period of 3 years ending with the acquisition;

(d) the supply is made to a person who is—

(i) the person, or one of the persons, whose beginning to live in the property brought to an end the period mentioned in paragraph (a), and

(ii) the person, or one of the persons, who acquired the dwelling as mentioned in paragraph (b); and

(e) the relevant works are carried out during the period of one year beginning with the day of the acquisition.

(4) In this paragraph “the relevant works” means—

(a) where the supply is of the description set out in item 1, the works that constitute the services supplied;

(b) where the supply is of the description set out in item 2, the works by which the materials concerned are incorporated in the dwelling concerned or its immediate site.

(5) In sub-paragraph (3), references to a person acquiring a dwelling are to that person having a major interest in the dwelling granted, or assigned, to him for a consideration.

Valid from 01/06/2002

Items 1 and 2 apply to related garage works U.K.

[F2 3A  

(1) For the purposes of this Group a renovation or alteration of any premises includes any garage works related to the renovation or alteration.

(2) In this paragraph “garage works” means—

(a) the construction of a garage,

(b) the conversion of a building, or of a part of a building, that results in a garage, or

(c) the renovation or alteration of a garage.

(3) For the purposes of sub-paragraph (1), garage works are “related” to a renovation or alteration if—

(a) they are carried out at the same time as the renovation or alteration of the premises concerned, and

(b) the garage is intended to be occupied with the premises.]

Textual Amendments

F2 Sch 7A Pt. 2 Group 7 Note 3A inserted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 5(f)

Valid from 11/05/2001

Items 1 and 2 only apply if planning consent and building control approval obtained U.K.

4 (1) Item 1 or 2 does not apply to a supply unless any statutory planning consent needed for the renovation or alteration has been granted.

(2) Item 1 or 2 does not apply to a supply unless any statutory building control approval needed for the renovation or alteration has been granted.

Valid from 01/06/2002

Items 1 and 2 only apply if building used for relevant residential purpose is subsequently used solely for that purpose U.K.

[F3 4A  

(1) Item 1 or 2 does not apply to a supply if the premises in question are a building, or part of a building, which, when it was last lived in, was used for a relevant residential purpose unless—

(a) the building or part is intended to be used solely for such a purpose after the renovation or alteration, and

(b) before the supply is made the person to whom it is made has given to the person making it a certificate stating that intention.

(2) Where a number of buildings on the same site are—

(a) renovated or altered at the same time, and

(b) intended to be used together as a unit solely for a relevant residential purpose,

then each of those buildings, to the extent that it would not be so regarded otherwise, shall be treated as intended for use solely for a relevant residential purpose.]

Textual Amendments

F3 Sch. 7A Pt. 2 Group 7 Note 4A inserted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 5(g)

Valid from 11/05/2001

Meaning of “supply of qualifying services” U.K.

5 (1) “Supply of qualifying services” means a supply of services that consists in—

(a) the carrying out of works to the fabric of the dwelling, or

(b) the carrying out of works within the immediate site of the dwelling that are in connection with—

(i) the means of providing water, power, heat or access to the dwelling,

(ii) the means of providing drainage or security for the dwelling, or

(iii) the provision of means of waste disposal for the dwelling.

(2) In sub-paragraph (1)(a), the reference to the carrying out of works to the fabric of the dwelling does not include the incorporation, or installation as fittings, in the dwelling of any goods that are not building materials.

Valid from 11/05/2001

Meaning of “building materials” U.K.

6 In this Group “building materials” has the meaning given by Notes (22) and (23) of Group 5 to Schedule 8 (zero-rating of construction and conversion of buildings).