2001 No. 2305
The Value Added Tax (Conversion of Buildings) Order 2001
Made
Laid before the House of Commons
Coming into force
The Treasury, in exercise of the powers conferred on them by sections 30(4), 35(5) and 96(9) of the Value Added Tax Act 19941 and of all other powers enabling them in that behalf, hereby make the following Order:
1
This Order may be cited as the Value Added Tax (Conversion of Buildings) Order 2001 and shall come into force on 1st August 2001 and shall have effect in relation to supplies made on or after that date.
2
Group 5 of Schedule 8 to the Value Added Tax Act 19942 (zero-rating) shall be varied in accordance with article 3 below.
3
For Note (7) there shall be substituted—
7
For the purposes of item 1(b), and for the purposes of these Notes so far as having effect for the purposes of item 1(b), a building or part of a building is “non-residential” if—
a
it is neither designed, nor adapted, for use—
i
as a dwelling or number of dwellings, or
ii
for a relevant residential purpose; or
b
it is designed, or adapted, for such use but—
i
it was constructed more than 10 years before the grant of the major interest;
and
ii
no part of it has, in the period of 10 years immediately preceding the grant, been used as a dwelling or for a relevant residential purpose.
7A
For the purposes of item 3, and for the purposes of these Notes so far as having effect for the purposes of item 3, a building or part of a building is “non-residential” if—
a
it is neither designed, nor adapted, for use—
i
as a dwelling or number of dwellings, or
ii
for a relevant residential purpose; or
b
it is designed, or adapted, for such use but—
i
it was constructed more than 10 years before the commencement of the works of conversion, and
ii
no part of it has, in the period of 10 years immediately preceding the commencement of those works, been used as a dwelling or for a relevant residential purpose, and
iii
no part of it is being so used.
4
Note (7A) as substituted shall apply for the purposes of section 35 of the Value Added Tax Act 19943 and—
a
in subsection (4) of that section, at the end there shall be inserted “but this is subject to subsection (4A) below.”, and
b
after that subsection there shall be inserted—
4A
The meaning of “non-residential” given by Note (7A) of Group 5 of Schedule 8 (and not that given by Note (7) of that Group) applies for the purposes of this section but as if—
a
references in that Note to item 3 of that Group were references to this section, and
b
paragraph (b)(iii) of that Note were omitted.
(This note is not part of the Order)