VCONST20200 - Changing the use of certificated buildings - buildings completed before 1 March 2011: relevant zero-rated supply

A charge can only arise if there has been a ‘relevant zero-rated supplyâ€� of the property. This is a zero-rated supply that relates to a building intended for use for a relevant residential or charitable purpose. This was defined in the Value Added Tax Act 1994, Schedule 10, Paragraph 35 prior to »Ê¹ÚÌåÓýapp Value Added Tax (Buildings and Land) Order 2011 (SI86/2011) as a supply that has been zero-rated under the Value Added Tax Act 1994, Schedule 8, Group 5.

»Ê¹ÚÌåÓýapp zero-rated supply may be the:

  • construction of a building (VCONST02000)
  • first grant of a major interest in a building (VCONST03000)
  • first grant of a major interest in a converted non-residential building (VCONST04000)
  • conversion for a relevant housing association of a non-residential building (VCONST05000).

Note: A supply that has been zero-rated by application of ESC 3.29 (VCONST19000) isn’t a relevant zero-rated supply. A taxable charge won’t arise on a change of use of the building.