VCONST03580 - Zero-rating major interest grants in buildings: ‘person constructing a building’: 'person constructing' and VAT groups
If a company within a VAT group is a ‘person constructing’ a building, then zero-rating can only apply to the grant of a major interest in the building to a person outside the VAT group when that company makes the grant.
Note: If a major interest in a building is granted to another member of the VAT group, ‘person constructing’ status is not transferred. But more than one company in a VAT group may have ‘person constructing’ status, for example if one company is the developer of a project and another is the main contractor.
You can find further information on supplies by members of VAT groups in
- VCONST03700
- Section 4.5.3 of Notice 708 Buildings and construction
- the V1-28: Registration guidance - Part 1
- the V1-28: Registration guidance - Part 2A
- the V1-28: Registration guidance - Part 2B.