»Ê¹ÚÌåÓýapp

Grant to a person who will use the building for non-qualifying purposes

If a person who received a relevant zero-rated supply subsequently sells or leases the building to somebody who does not intend to use the building solely for a relevant residential or relevant charitable purpose after a grant is made, then the grant is a taxable supply.

For lease (or sale) and lease-back (or lease-on) transactions, you should follow the same approach as at VCONST18300 to determine if the building will be used solely for a relevant residential or relevant charitable purpose.

Change of use or intention of the building after the grant has been made

A grant is not standard-rated when the recipient of the grant certifies that the building (or part) will be used solely for a relevant residential or relevant charitable purpose. If the person actually using the building subsequently changes his intentions, the liability of the grant is not revisited.

Note: If the grant qualified for the zero rate, the recipient may himself incur a charge (VCONST20600).

»Ê¹ÚÌåÓýapp relevant law

»Ê¹ÚÌåÓýapp relevant provisions were the Value Added Tax Act 1994, Schedule 10, Paragraph 36 prior to »Ê¹ÚÌåÓýapp Value Added Tax (Buildings and Land) Order 2011 (SI86/2011).