Introduction to the New VAT
on Property System
Ronan O’Grady BBLS (European), AITI)
The Practice
Is located on the 4th Floor, 8-34, Percy
Place, Dublin 4.
The mission of the practice is to provide
legal and practical solutions to our
clients’ problems.
The Practice
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Our firm has a strong commercial emphasis and
is dedicated to providing clients with a fast
efficient and reliable service constantly adapting
to meet with diverse requirements in a rapidly
changing and increasingly complex environment.
The Practice
Our focus is aimed towards the solution of client
needs in the most practical and constructive
manner possible.
VAT – Basic Principles
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
The Common System of VAT
The Objectives of the New System
Taxable and Accountable Persons
Connected Person
Freehold / Freehold Equivalent Interest
Deductibility Adjustment
Development
Adjustment Period
Completed and Occupied
Escaping the VAT Net
Taxable Sales of Property
Leases and VAT – Overview
Capital Goods
VAT – The Basics
 Applies
on the supply of taxable goods and
services
 No sticking VAT for fully accountable persons
– (they can reclaim it)
 VAT is absorbed by businesses (banks,
insurance companies etc.) engaged in exempt
activities and private individuals
The Common System of VAT
Along with other EU Member States, we are
obliged to apply the “Common System of
VAT” – but prior to 1st July, 2008:

We taxed certain occupational leases as a supply of
goods - for all other EU States, leasing is a taxable
service.
 We did not allow time apportionment of VAT
according to taxable usage for capital assets – a
capital goods system
Example
In June 2006, a bank buys a new property for €20m plus VAT of
€2.7m. In April 2008, it sells it for €23m. The bank will get no
credit for the VAT incurred in 2006. In other EU Member States
the Bank could claim a refund of the 2006 VAT reduced on a time
apportioned basis.
How? On a ten year VAT Life from date of purchase it
might get 8/10 back based on a remaining 8 years of that 10 year
VAT Life and on a 20 year VAT Life it could reclaim 18/20 or
9/20
The Objectives of the New System
 To
regularise VAT on the leasing of property
 To
provide a capital goods system for property
in the VAT Net
 To
move our system closer to the common
system of VAT
New concepts for the New System
 The
new system is based on an array of new
concepts. Some are relatively simple, others
are very strange in an Irish context.
 Some
are defined, others must be labelled so
they can be identified.
Taxable Person / Accountable Person
From the 1st of July, 2008;

A “Taxable Person” is a person engaged in economic activity (including
exempt activities for VAT purposes)

An “Accountable Person” is a person who is obliged to register and
account for VAT

Many vendors and purchasers of property and landlords may find that they
are obliged or encouraged to register for VAT

Solicitors/Accountants must be able to advise them accordingly
Connected Person
Very widely defined linkage for anti
avoidance including relations, partners,
common controlled companies, trustees,
settlors, beneficiaries are used in determining
whether a sale of developed property is
mandatorily taxable and to deny a landlord
the right to charge VAT on an occupational
lease in certain circumstances.
Freehold / Freehold Equivalent Interest
Freehold – Self Evident
A Freehold Equivalent Interest - is a lease which bestows effective economic
ownership of a property (an ownership lease).
 Contrast this with an occupational lease which is a lease of property under
which the rent is merely a payment for the use of the property let.
Why is the distinction significant?
 Because the consideration of the grant of a lease which is a Freehold
Equivalent Interest may be taxed as the supply of immovable property
(13.5%) and the consideration for the grant of an occupational lease may be
taxed as a service (21%)
“Completed” and ”Occupied”
“Completed” means the development of the property
has reached such a state, apart from any finishing or
fitting out works, that the property can be used for the
purposes it was designed and the utilities and services
required are connected.
 “Occupied” means occupied and fully in use
following completion and where the property is let,
occupied and fully in use by such tenant
 The dates these occur are part of the VAT history of a
developed property.

Deductibility Adjustment
A Deductibility Adjustment is a recalculation of the
VAT liability of a property owner triggered by an event,
such as an exempt sale or a letting where the option to tax
is not exercised or change of taxable use.
Final deductibility adjustment applies on a time
apportioned basis over the VAT life or the property.
An interval deductibility adjustments can apply in respect
of that interval only.
A deductibility adjustment can be in favour of the Revenue
or of the tax payer.
VAT, Property and Development
As a general rule, the supply of a property is not taxable
unless it has been developed or acquired in a developed
condition. A property is developed for VAT purposes if
it has undergone:
 Construction works on a building (generally 4 walls
and a roof); or
 Operations to effect material change of use.
Under the new system “Refurbishment“ is defined as
“development to a previously completed Building”.
Examples of Undeveloped Property
 The
sale of a Greenfield site (unless services
are laid to it or it is sold in conjunction with a
development agreement); or
 An old building, such as a Georgian building,
which has not been the subject of construction
work or engineering or other operations to
effect a material change of use.
Adjustment Period
The period of 20 intervals (20 years approximately)
since the date a property was developed; or,
 If acquired after development, subject to a right to
claim VAT on the acquisition, the period of 20
intervals (20 years approximately) from that
acquisition
 If refurbished (and held by the refurbisher), the
period of 10 intervals (10 years approximately) from
the refurbishment.
Examples of Developed Property
The sale of a newly completed office block.
The sale of an old building which has been
subjected to works to effect a materially changed
use such as where an old warehouse has been
converted to shop units.
But a developed property does not stay taxable
forever.
Development – Period 1
old cut off date of 31st of October, 1972 is
gone
 The
 This
liberates quite a number of properties
which were regarded as being in the VAT net
on 30th of June, 2008.
 Cut
off or the adjustment period is decided on
the basis of new rules
Taxable Supplies of Property (1)
After the 30th of June, 2008, only the
following are mandatorily taxable at 13.5%:
 New
Residential property sold by a developer
after the 30th of June, 2008.
 New Commercial property sold by a developer
after the 30th of June, 2008 and within five
years of development
Taxable Supplies of Property (2)

Commercial property sold by the owner within five
years of development at any time until the property:

Has been occupied for at least two years; and

Since development has been the subject of at least
one arms length sale. (sales between commercial
persons are ignored)
These types of property are called New or Nearly
New
Example
In July, 2008, a factory is completed. It is
sold on the 1st of August, 2008. The sale is
mandatorily taxable at the 13.5% rate. On
the basis that from the 1st of August, 2008 it
is occupied on a continuous basis, any
further sales until the 30th of June, 2010 will
also be mandatorily taxable.
What Happens Then?
What do we call property which is not new
or nearly new but still can have between 15
and 18 interests on years in its adjustment
period?
The best title for it is the “UNNEW”
Example
On the 1st of July, 2008, an office is
completed. It is sold to an accountable
person on the 1st of August, 2008 and
occupied until the 1st of January, 2011 (2½
years after completion). It is no longer new
or nearly new but rather “unnew”.
For what special treatment is an “unnew”
property singled out?
Exempt with Option to Tax (1)
This bland but misleading named concept
can give trouble
 We
christen it.
Exempt with Option to Tax (2)
EWOTT!
Exempt with Option to Tax (3)
If you do not exercise the option to tax on
the sale of “unnew” property you may suffer
a Deductible Adjustment.
VAT claimed on acquisition or development
reduced on a time apportioned basis will be
clawed back by way of deductibility
adjustment.
Example (1)
In 1997, a property was developed at a cost of
€10m PLUS vat of €1.35M. The VAT is
reclaimed and the property is used continuously
for fully taxable purposes. If it is sold in July 2008
(after 11 intervals) and the option to tax is not
exercised, the seller will have a debit deductibility
adjustment of €0.65m.
Effectively the seller is penalised under the capital
goods system for VAT attributable to the residue of
the adjustment period.
Example (2)
But there is a solution!
Exercise the joint option to tax the sale. If the
option is validly exercised the purchaser self
accounts for VAT and the vendor is of the hook.
Be sure it is exercisable
- Both vendor and purchaser must be taxable
persons.
- Purchaser must register and account for VAT
Out of Scope
After unnew (that is after the Adjustment
Period has expired) a property is out of
scope (old). Any sale is free of VAT.
Out of Scope – Diagram of
Adjustment Period
The Life of a Developed Property
20 years approximately
—————————►
New
Nearly New
“Unnew”
Out of Scope
The Life of a Refurbished Property
10 years approximately
—————————►
New
Nearly New
“Unnew”
Out of Scope
Leasing and Letting
 The
old Capitalised value system for
taxing leases is gone.
 The
letting of a property under an
occupational lease is an exempt service
for VAT purposes and is also subject to a
landlord’s option to tax at 21%.
Leasing and Letting
Example:
Lease of new unit in shopping centre granted on the 30th
of June, 2008. VAT is charged on capitalised value.
Contrast this with a lease of a new unit in a shopping
centre granted on the 1st of July, 2008. If LL opts to tax,
VAT is charged at 21% on rent. If LL does not opt to
tax, LL must repay VAT on input costs on acquisition
or development of the unit.
Assignment / Surrender of
Occupational Lease

This is one of the features which solicitors/Advisors
will find bizarre.
 Is it a supply of immovable goods or the supply of a
service?
 Answer – generally it is the supply of a service, the
tax rate can be 21% of the Consideration payable. By
way of exception, Assignments and Surrenders of
certain Leases still in the VAT net on the 1st of July,
2008 known as “Legacy Leases” are taxed as the
supply of immovable goods in accordance with a
formula.
Conditions of Sale under the New
Regime – Acting for a Vendor
 Generally, vendors
and their advisors are
cautious people.
 They
feel that it is safer to charge VAT even if
there may be a chance that it does not apply
 This
may be unsafe and is unlikely to satisfy a
diligent purchaser.
Conditions of Sale under the New
Regime – Acting for a Vendor

Have presentable VAT records when drafting the contract.
 You must identify the VAT status of property
 Remember the supply of a freehold equivalent lease is a sale of
immovable goods.
 The sale of an occupational lease can be taxable at 21% on the
premium.
 Is your client a taxable person?
 Is your client an accountable person?
 Does your client have partial deductibility?
 Is the purchaser a taxable person? If not, the option to tax the
sale of unnew freehold/freehold equivalent is not available.
Conditions of Sale under the New
Regime – Acting for a Purchaser

Make sure you review the VAT records and satisfy yourself
that the VAT treatment is appropriate.
 Identify the VAT status of the property.
 Is your client a taxable person?
 Is your client an accountable person?
 Does your client have partial deductibility?
 Will the property be used by the purchaser for wholly taxable
activities?
 Does the VAT burden actually fall on your client?
 Could the VAT conditions be changed to suit your client?
 Register for VAT if option to tax exercised.
Occupational Lease Terms – Acting
for a Landlord
Consider:
 Exercise Landlord’s option to tax and oblige tenant to pay
VAT on rent
 Right to cancel and opt to charge VAT on rent
 Prohibition for VAT on assignment to connected person.
 Indemnity against VAT triggered by unwitting use of property
by connected person where the VAT deductibility ratio is less
than 90%
 Prohibition on use with less than 90% VAT recoverability by
connected person.
 No responsibility taken (unless agreed) for tenant’s VAT on
refurbishments.
 Register for VAT
Occupational Lease Terms – Acting
for a Tenant
 VAT
invoices to be issued for each payment of
VAT on rent.
 Date adjustment period ends to be advised.
 If refurbishment is to take place, look for
Landlord to take responsibility for VAT on
surrender.
Reward for the Vigilant Tenant
Landlord’s adjustment periods are finite. If a tenant
with partial deductibility knows the date of
expiration of his Landlord’s adjustment period, he
can ask his Landlord to cancel the option to tax the
lease on that date. No VAT will then apply on the
rent. He may ask for an option to pay the Landlord
to cancel when the VAT cost to the Landlord is
low. Tax trap for Landlord if property is still new or
nearly new.
Consider the Use
Example:
A bank supplies both taxable and exempt services
form an old building. Due to expansion of its
business, it will acquire a new office block after the
30th of June, 2008. If it moves its exempt services
operations to the new office it will suffer
irrecoverable VAT on the acquisition, however, if it
moves its taxable services to the new office, it
stands to recoup VAT on the acquisition of the new
office – 13.5% is a very significant saving.
Watch for the Tax Traps
If a vendor is selling “unnew” property and
fails to exercise the option to tax, he will
suffer a clawback of VAT on the sale.
Plan Ahead
Include VAT planning in any strategy for the
sale, purchase or leasing of property. If you
wait until after a transaction has been
agreed, planning for VAT may no longer be
an option.
Reading Material
1.
2.
3.
4.
5.
Revenue VAT on Property Guide
Revenue FAQ
Tax Briefing No. 69
Law Society VAT Special Conditions
Key to VAT on Property Transactions (Law
Society Gazette October, 2008)
In Conclusion
Tax Planning
 The most revolutionary change in VAT on
property since VAT was introduced in 1972.
 There will be many tax planning opportunities
and many tax traps, especially for exempt and
partially exempt businesses.
 Solicitors/Advisors who ignore VAT do so at
their peril.
 Slides give a general picture not necessarily
comprehensive in a particular situation.
Appendix 1- Tables and
Checklist
Table 1: Sale of Freehold/Freehold Equivalent Interest of Assignment/
Surrender of Legacy Lease where VAT is Mandatorily Chargeable at
13.5%
Property Sold
Tax Status
Vendor
Must
Purchaser Must
VAT Calculated
By Reference
To
deductibility
Adjustment For
Vendor
Relevant VAT
Special
Conditions
Residential property
sold by the developer
(including property
covered by s.4B(7)).
Taxable
Charge VAT
at 13.5%
If acting as taxable
person, ask for invoice
13.5% of market
value / selling
price
N/A
3.1 and 3.2
Partially developed
property.
Taxable
Give VAT
invoice
Charge VAT
at 13.5%
Ask for invoice
13.5% of market
value / selling
price
Possible credit if
vendor has partial
VAT recovery.
3.1,3.2 and 3.9
New or nearly new
freehold / freehold
equivalent commercial
property (including
property covered by
s.4B(3))
Taxable
Give VAT
invoice
Charge VAT
at 13.5%
Ask for:
(a) invoice;
(b) Date of
development; and
(c) Evidence of dates
and periods of
occupation if relevant.
13.5% of market
value / selling
price
Possible credit if
vendor has partial
VAT recovery.
3.1,3.2 and 3.9
Assignment or
surrender during
adjustment period by
an accountable person
of occupational lease
created by a taxable
person prior to 1/7/08 of
commercial property (a
legacy lease).
Taxable
Give:
(a)
Statement
under
section
4C(8)(a);
And
(b) Copy of
capital
goods
record
Ask for:
(a) Document under
Section 4C(8)(a); and
(b) Copy of capital
goods record;
And self account for
VAT
Apply the formula
Possible credit if
vendor has partial
VAT recovery.
3.1, 3.4 and 3.9
or 3.1 and 3.2
and 3.9
TXN
Y
Premium /
reverse premium
ignored.
Table 2: Exempt Sale during Adjustment Period of Second-hand
Freehold / Freehold Equivalent Interest where, unless Option
Exercised, deductibility Adjustment may Apply
Property Sold
Tax Status
Vendor Must
Purchaser
Must
VAT
Calculated By
Reference To
deductibility
Adjustment For
Vendor
Relevant VAT
Special
Conditions
Developed
second-hand
commercial
property sold
during
adjustment
period (both
vendor and
purchaser are
taxable
persons).
Exempt, and if
joint option to
tax not
exercised,
deductibility
adjustment
may apply.
Consider:
(a) Obliging
purchaser to
exercise joint
option to tax,
and (if
appropriate)
claiming VAT
rebate (if any);
or
(b) Accounting
to the revenue
for
deductibility
adjustment.
If joint
option
exercise,
apply
reverse
charge VAT
at 13.5%
If joint option
exercised:
13.5% of
market value /
selling price.
Debit if option to
tax not
exercised.
Possible credit if
vendor has
partial VAT
recovery and
option is
exercised.
3.1, 3.3 (first
alternative)
and 3.9 if joint
option is
exercised.
If joint option
not exercised:
Apply the
deductibility
adjustment
formula;
BX N
T
3.1 and 3.3
(second
alternative) if
joint option is
not exercised.
Table 3: Sale of Transitional Freehold / Freehold Equivalent Interest of
Legacy Lease by a Taxable Person with no Entitlement to Deduct VAT
Property Sold
Tax Status
Vendor Must
Purchaser Must
VAT Calculated
By Reference
To
deductibility
Adjustment For
Vendor
Relevant VAT
Special
Conditions
Commercial
property acquired
or developed
prior to 1/7/08
and sold during
adjustment
period.
Exempt with joint
option to tax (with
no deductibility
adjustment).
Consider:
(a) Obliging
purchaser to
exercise joint
option to tax to
secure partial
refund of VAT
under Section 12
E(7)(a);
or (b) treat supply
as exempt.
If joint option
exercised apply
reverse charge
VAT at 13.5%
If option
exercised, 13.5%
of market value /
selling price.
Possible credit if
option exercised.
If VAT is
charged, 3.1, 3.2,
3.3 (first
alternative) and
3.9 or if no VAT
is charged delete
VAT clause
entirely.
Assignment
during
adjustment
period of
occupational
lease created by
a taxable person
prior to 1/7/08 of
commercial
property (a
legacy lease).
Exempt with joint
option to tax (with
no deductibility
adjustment).
Consider:
(a) Obliging
purchaser to
exercise joint
option to tax to
secure partial
refund of VAT
under Section 12
E(7)(a);
or (b) treat supply
as exempt.
If joint option
exercised.
(a) Ask for VAT
statement;
(b) Ask for copy
of capital goods
record; and
(c) Apply reverse
charge according
to formula.
Apply formula in
Table 1D.
Possible credit if
option exercised.
3.1, 3.3 (first or
second
alternative) and
3.9
TXN
Y
Premium /
reverse premium
ignored for
assignment or
surrender of a
legacy lease.
Table 4: Exempt Sale of Freehold / Freehold
Equivalent Property where no deductibility
Adjustment Applies
Property
Sold
Tax Status
Vendor Must
Purchaser
Must
VAT
Calculated
By Reference
To
deductibility
Adjustment
For Vendor
Relevant VAT
Special
Conditions
Freehold /
freehold
equivalent
property which
was never
developed or
is out of the
adjustment
period.
Exempt with
option to tax.
Confirm tax
status of
property to
purchaser
Ask for tax
status to be
confirmed by
documentary
evidence.
N/A unless
option to tax is
exercised,
then 13.5%
N/A
None
necessary if
joint option is
not exercised.
Second-hand
residential
property (not
developed
since
acquisition) in
private
residential use
by owner.
Not taxable.
If joint option
to tax is
exercised as
Table 1, item
D
N/A
N/A
N/A
N/A
None
necessary.
Table 5: Assignment or Surrender for Premium / Reverse Premium of
Occupational Lease (other than Legacy Lease) by Taxable Person:
VAT is chargeable at 21% on Premium / Reverse Premium
Property Sold
Tax Status
Vendor Must
Purchaser Must
VAT calculated By
Reference To
Relevant VAT
Special Conditions
Assignment or
surrender for
premium/reverse
premium by taxable
person of
occupational lease
created after 30/6/08
not covered in Table
6 item B.
Premium / reverse
premium taxable as
service.
If payer, ask for
invoice.
If payer, ask for
invoice.
21% of premium /
reverse premium
3.1, 3.5 or 3.6 and
3.9
If payee, provide
invoice and charge
VAT at 21%
If payee, provide
invoice and charge
VAT at 21%
Assignment or
surrender by taxable
person for
premium/reverse
premium of
occupational lease
created prior to 1st
July, 2008 for a term
or less than 10 years
where the Landlord’s
waiver of exemption
from applies.
Premium / reverse
premium taxable as
service.
If payer, ask for
invoice.
If payer, ask for
invoice.
21% of premium /
reverse premium
Not covered.
Use 3.1, 3.5 adapted
and 3.9
If payee, provide
invoice and charge
VAT at 21%
If payee, provide
invoice and charge
VAT at 21%
Table 6: Assignment / Surrenders of Lease where
no VAT is Chargeable as either a Supply of a
Good or a Service
Property Sold
Tax Status
Vendor
Must
Purchaser
Must
VAT
Calculated
By
Reference
To
deductibility
Adjustment
For Vendor
Relevant
VAT
Special
Conditions
Assignment or surrender by
taxable person for
premium/reverse premium of:
(a) Occupational lease for a
term of 10 years or more
created prior to 1/7/08, where
VAT was not chargeable on
supply of Lease
(b) Occupational lease for a
term of less than 10 years
created prior to 1/7/08 where
Landlord did not waive
exemption from VAT on rent.
Exempt (by
Revenue
concession)
.
N/A
N/A
N/A
N/A
None
necessary
Surrender for premium /
reverse premium of
occupational lease created
after 30/6/08 where landlord
has not exercised the
landlord’s option to tax.
None
None
None
None
None
None
Table 7: Transfer of Business under Section
3(5)(b)(iii) and Section 5(8)
Property
Sold
Tax Status
Vendor
Must
Purchaser
Must
VAT Calculated
By Reference
To
deductibility
Adjustment For
Vendor
Relevant VAT
Special
Conditions
Partially
developed
freehold /
freehold
equivalent
commercial
property.
Not taxable
because
not a
supply for
VAT
purposes.
Claim for
deductibility
adjustment
(if any)
Account for
any
deductibility
adjustment
on
acquisition
For purchaser’s
CGS: VAT that
would have been
charged had the
transaction been
a supply for VAT
purposes
Possible credit if
vendor has
partial VAT
recovery.
3.1, 3.8 and
3.9
New or nearly
new freehold /
freehold
equivalent
interest.
Not taxable
because
not a
supply for
VAT
purposes
Claim for
deductibility
adjustment
(if any).
(a) Set up
capital goods
records
based on 20
intervals.
(b) Account
for any
deductibility
adjustment
on
acquisition.
For purchaser’s
CGS: VAT that
would have been
charged had the
transaction been
a supply for VAT
purposes.
Possible credit if
vendor has
partial VAT
recovery.
3.1, 3.8 and
3.9
Property
Sold
Tax Status
Vendor Must
Purchaser
Must
VAT
Calculated
By Reference
To
Deductibility
Adjustment
For Vendor
Relevant VAT
Special
Conditions
Second-hand
freehold /
freehold
equivalent
Not taxable
because not a
supply for VAT
purposes.
Give copy of
capital goods
record.
(a) Maintain
capital goods
record based on
continuation of
business.
(b) Account for
any deductibility
adjustment at
end of vendor’s
current interval.
For purchaser’s
CGS: vendor’s
VAT position.
N/A
3.1, 3.8 and 3.9
Assignment /
surrender of
legacy lease
Not taxable
because not a
supply for VAT
purposes.
Give capital
goods record.
(a) Maintain
capital goods
record based on
continuation of
business.
(b) Account for
any deductibility
adjustment at
end of vendor’s
current interval.
For purchaser’s
CGS: vendor’s
VAT position.
N/A
3.1, 3.8 and 3.9
Assignment /
surrender of
occupational
lease (other
than legacy
lease) for
premium /
reverse
premium.
Not taxable
because not a
supply for VAT
purposes –
The Revenue
accept as
intangible
asset for
Section 5(8)
N/A
N/A
Premium /
reverse
premium
N/A
3.1, 3.8 and
3.9 and insert
new special
condition as
appropriate.
Summary in Diagram Form
Preliminary tasks
1. Is it a sale for VAT purposes?
2. Do the new rules apply?
Are you selling undeveloped land?
Land that has had no work done to it and
is not caught by anti-avoidance
Are you selling an old
property?
Completed>5 years prior to sale, and not developed in
those 5 years
The sale is
exempt from
VAT
The sale is
exempt from
VAT
Are you selling an old building?
Completed>5 years prior to sale, and no significant
development in those 5 years.
The sale is
exempt from
VAT
Are you selling a used second-hand
property?
Completed / not developed since completion / occupied for
24 months / previous VATable transfer since completion
between unconnected VATable persons
The sale is
exempt from
VAT
Are you selling a used second-hand
building?
Completed within 5 years /
occupied for 24 months / previous
VATable transfer since completion
between unconnected VATable
persons / no significant development
since completion
The sale is VATable
The sale is
exempt from
VAT
Compare and Contrast the Five Exempt Categories
Exempt Category 1
Sale of undeveloped land
Provided the sale is not snared
by the anti-avoidance legislation
Exempt Category 2
Sale of old property
Exempt Category 3
Completed > 5 years ago
Not been developed in last 5
years
Completed > 5 years ago developed in last 5 years
but not significantly
Sale of old building
Exempt Category 4
Sale of used second-hand property
Exempt Category 5
Sale of used second-hand Building
Completed within 5 years of sale not developed since most
recent completion occupied for 24 months since most recent
completion the previous sale was between VATable persons
Completed within 5 years of sale development since that
completion not significant occupied for 24 months since that
Completion already a previous sale since that completion
The previous sale was between VATable persons the previous
buyer and seller were not connected
Notes
1.
The distinction between a “property” and a “building” in this context is that a “property”, as well
as including buildings, covers other property works, such as bridges, roads, golf-courses,
dams and so on. A “building” means just that: “a building”.
2.
If you contrast the meanings of “old properties” and ”old buildings” (categories 3 and 4), you
will note that, in order for it to be an old property, no development work must have taken place
in the five years prior to sale. In contrast, in the case of “an old building”, no significant
development work must have taken place.
3.
“Old” in the context of “old properties” and “old buildings” means more than five years: to
paraphrase Mr. Wordsworth, five years must have passed; five summers, with the length of
five long winters!
4.
You will note that in all categories, except category 1, completion must have taken place.