Value Added Tax Act 1994

Notes: U.K.

[F1 (1) “Grant”includes an assignment or surrender and the supply made by the person to whom an interest is surrendered when there is a reverse surrender.]

[F2 (1A) A “reverse surrender” is one in which the person to whom the interest is surrendered is paid by the person by whom the interest is being surrendered to accept the surrender.]

(2) A building shall be taken to be completed when an architect issues a certificate of practical completion in relation to it or it is first fully occupied, whichever happens first; and a civil engineering work shall be taken to be completed when an engineer issues a certificate of completion in relation to it or it is first fully used, whichever happens first.

(3) [F3 Notes (2) to (10) and (12)] to Group 5 of Schedule 8 apply in relation to this Group as they apply in relation to that Group.

(4) A building or civil engineering work is new if it was completed less than three years before the grant.

(5) Subject to Note (6), the grant of the fee simple in a building or work completed before 1st April 1989 is not excluded from this Group by paragraph (a)(ii) or (iv).

(6) Note (5) does not apply where the grant is the first grant of the fee simple made on or after 1st April 1989 and the building was not fully occupied, or the work not fully used, before that date.

(7) A tenancy of, lease of or licence to occupy a building or work is treated as becoming a developmental tenancy, developmental lease or developmental licence (as the case may be) when a tenancy of, lease of or licence to occupy a building or work, whose construction, reconstruction, enlargement or extension commenced on or after 1st January 1992, is treated as being supplied to and by the developer under paragraph 6(1) of Schedule 10 [F4 (except where that paragraph applies by virtue of paragraph 5(1)(b) of that Schedule)].

(8) Where a grant of an interest in, right over or licence to occupy land includes a valuable right to take game or fish, an apportionment shall be made to determine the supply falling outside this Group by virtue of paragraph (c).

(9) “Similar establishment” includes premises in which there is provided furnished sleeping accommodation, whether with or without the provision of board or facilities for the preparation of food, which are used by or held out as being suitable for use by visitors or travellers.

(10) “Houseboat” includes a houseboat within the meaning of Group 9 of Schedule 8.

(11) Paragraph (e) includes—

(a) any grant excluded from item 1 of Group 5 of Schedule 8 by [F5 Note (13)] in that Group;

(b) any supply made pursuant to a tenancy, lease or licence under which the grantee is or has been permitted to erect and occupy holiday accommodation.

(12) Paragraph (e) does not include a grant in respect of a building or part which is not a new building of—

(a) the fee simple, or

(b) a tenancy, lease or licence to the extent that the grant is made for a consideration in the form of a premium.

(13) “Holiday accommodation” includes any accommodation in a building, hut (including a beach hut or chalet), caravan, houseboat or tent which is advertised or held out as holiday accommodation or as suitable for holiday or leisure use, but excludes any accommodation within paragraph (d).

(14) A seasonal pitch is a pitch—

(a) which is provided for a period of less than a year, or

(b) which is provided for a year or a period longer than a year but which the person to whom it is provided is prevented by the terms of any covenant, statutory planning consent or similar permission from occupying by living in a caravan at all times throughout the period for which the pitch is provided.

(15) “Mooring” includes anchoring or berthing.

(16) Paragraph (m) shall not apply where the grant of the facilities is for—

(a) a continuous period of use exceeding 24 hours; or

(b) a series of 10 or more periods, whether or not exceeding 24 hours in total, where the following conditions are satisfied—

(i) each period is in respect of the same activity carried on at the same place;

(ii) the interval between each period is not less than one day and not more than 14 days;

(iii) consideration is payable by reference to the whole series and is evidenced by written agreement;

(iv) the grantee has exclusive use of the facilities; and

(v) the grantee is a school, a club, an association or an organisation representing affiliated clubs or constituent associations.

Textual Amendments

F1 Sch. 9 Pt. II Group 1 Note (1) substituted (1.3.1995) by S.I. 1995/282, arts. 1, 3

F2 Sch. 9 Pt. II Group 1 Note (1A) inserted (1.3.1995) by S.I. 1995/282, arts. 1, 4

F3 Words in Sch. 9 Pt. II Group 1 Note (3) substituted (1.3.1995) by S.I. 1995/282, arts. 1, 5

F4 Words in Sch. 9 Pt. II Group 1 Note (7) inserted (1.3.1995) by S.I. 1995/282, arts. 1, 6

F5 Words in Sch. 9 Pt. II Group 1 Note (11)(a) substituted (1.3.1995) by S.I. 1995/282, arts. 1, 7

Modifications etc. (not altering text)

C1 Sch. 9 Pt. 2 Group 1 Note (2)(4) applied (28.11.2002) by S.I. 1995/2518, reg. 84(6) (as inserted by The Value Added Tax (Amendment) (No. 3) Regulations 2002 (S.I. 2002/2918), reg. 4)