The Value Added Tax (Construction of Dwellings and Land) Order 1990

• Citation: S.I. 1990/2553
• Sections: 3

Section 1

This Order may be cited as the Value Added Tax (Construction of Dwellings and Land) Order 1990 and shall come into force on 1st February 1991.

Section 2

For Note (7) in Group 8 of Schedule 5 to the Value Added Tax Act 1983 there shall be substituted the following–

(7) The grant of an interest in, or in any part of–

(a) a building designed as a dwelling or number of dwellings; or

(b) the site of such a building,

is not within item 1 if–

(i) the interest granted is such that the grantee is not entitled to reside in the building, or part, throughout the year; or

(ii) residence there throughout the year, or the use of the building or part as the grantee’s principal private residence, is prevented by the terms of a covenant, statutory planning consent or similar permission.

Section 3

Group 1 of Schedule 6 to the Value Added Tax Act 1983 shall be varied as follows–

(a) for paragraph (d) of item 1 there shall be substituted the following–

(d) the grant of any interest in, right over or licence to occupy holiday accommodation;

(b) for Note (10) there shall be substituted the following–

(10) Paragraph (d) includes–

(a) any grant excluded from item 1 of Group 8 of Schedule 5 to this Act by Note (7) in that Group;

(b) any supply made pursuant to a tenancy, lease or licence under which the grantee is or has been permitted to erect and occupy holiday accommodation.

(c) after Note (10) there shall be inserted the following two Notes (10A) and (10B)–

(10A) Paragraph (d) does not include a grant in respect of a building or part which is not a new building of–

(a) the fee simple, or

(b) a tenancy, lease or licence to the extent that the grant is made for a consideration in the form of a premium.

(10B) “Holiday accommodation” includes any accommodation in a building, hut (including a beach hut or chalet), caravan, houseboat or tent which is advertised or held out as holiday accommodation or as suitable for holiday or leisure use, but excludes any accommodation within paragraph (c).