VCONST03300 - Zero-rating major interest grants in buildings: premiums and other payments
Where a grant of a major interest is either a long lease or a tenancy agreement, zero-rating is restricted to the premium or the first rental payment made in respect of that grant. Subsequent payments are exempt.
»Ê¹ÚÌåÓýapp legal basis for this is the Value Added Tax Act 1994, Schedule 8, Group 5, Note 14.