The Value Added Tax (Construction of Buildings) Order 1995
This Order substitutes Group 5 (Construction of Buildings etc) of Schedule 8 to the Value Added Tax Act 1994. The Group has been revised to bring greater certainty to the law relating to zero-rate relief for the construction of dwellings and buildings used for other relevant residential or charitable purposes; in particular where work is carried out on existing buildings. The major changes are that:persons converting non-residential property to create new dwellings or buildings for other relevant residential purposes can now zero-rate the grant of a major interest in the building or a part of the building;the construction of a self-contained annex used for a relevant charitable purpose can now be zero-rated, even if there is secondary access to it through an existing building;a new provision is introduced for apportionment of supplies of services relating in part to the construction or conversion of a qualifying building and in part to other matters;a stricter definition of an existing building is introduced.