The Value Added Tax (Construction of Dwellings and Land) Order 1990
Article 2 of this Order substitutes a new Note (7) in Group 8 of Schedule 5 to the Value Added Tax Act 1983 (c. 55.). The new Note excludes from zero-rating any supply by a developer of a dwelling, and now a site for a dwelling, where the owner or lessee is not entitled to live throughout the year because the terms of the sale or lease so prevent or residence throughout the year or use of the dwelling as a principal private residence is prevented by the terms of a covenant, statutory planning consent or similar permission.