VAT - the latest position on land and buildings
01 June 2008
This paper summarises the aspects of VAT which need to be
considered for most property transactions.
The Finance Act 1989 introduced far-reaching changes to the
treatment of land and buildings for VAT purposes. These were
required as a result of the decision, on 21 June 1988, of the
European Court of Justice that the UK was in breach of its treaty
obligations in maintaining zero-rating on land supplies except,
broadly, those relating to land used for residential or charitable
purposes.
Although much of the legislation was introduced with effect from
1 April 1989 and 1 August 1989, the law and practice in this area
has continued to develop. Many changes to the regime for the option
to tax were made on 1 June 2008.
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briefing paper