Richard Dalton (BDO) and Michael Ridsdale (Wedlake Bell) challenge the orthodox view that a dwelling is regarded as being constructed for VAT purposes when it has reached ‘golden brick’.
Under VATA 1994 Sch 8 Group 5 item 1(a) a person constructing a dwelling can zero-rate the first grant of a major interest in that dwelling enabling it to recover associated input tax. However this rather assumes that everyone can agree on when a developer has person constructing status for VAT purposes. Is this when the hoarding is erected around the site? Or when demolition of the previous building on the site commences? Or perhaps when the foundations of the new dwelling are started? Or is it when the dwelling is completed above foundations?
The orthodox view is that a dwelling is regarded as being constructed when it has reached ‘golden brick’. But it is not easy to...
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Richard Dalton (BDO) and Michael Ridsdale (Wedlake Bell) challenge the orthodox view that a dwelling is regarded as being constructed for VAT purposes when it has reached ‘golden brick’.
Under VATA 1994 Sch 8 Group 5 item 1(a) a person constructing a dwelling can zero-rate the first grant of a major interest in that dwelling enabling it to recover associated input tax. However this rather assumes that everyone can agree on when a developer has person constructing status for VAT purposes. Is this when the hoarding is erected around the site? Or when demolition of the previous building on the site commences? Or perhaps when the foundations of the new dwelling are started? Or is it when the dwelling is completed above foundations?
The orthodox view is that a dwelling is regarded as being constructed when it has reached ‘golden brick’. But it is not easy to...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
