»Ê¹ÚÌåÓýapp

Exclusion from zero-rating

For the purposes of the zero rate on grants of major interests, a holiday home is a building designed as a dwelling or a number of dwellings where residency throughout the year, or use as a principle private residence, is prevented.

»Ê¹ÚÌåÓýapp first grant of a major interest in a building that has been converted to a holiday home is exempt.

However, if, after conversion, the building is less than three years old when the grant is made, the grant will be standard-rated.

»Ê¹ÚÌåÓýapp legal basis for excluding the grant of holiday homes from zero-rating is the Value Added Tax Act 1994, Schedule 8, Group 5, Note 13.

Applying Note 13 to residence restrictions

»Ê¹ÚÌåÓýapp guidance in VCONST03420 applies in the same way to this guidance here.

Use ‘for the whole of the year�

»Ê¹ÚÌåÓýapp guidance in VCONST03430 applies in the same way to this guidance here.

What ‘principal private residence� means

»Ê¹ÚÌåÓýapp guidance in VCONST03440 applies in the same way to this guidance here.