VCONST04010 - Zero-rating major interest grants after a non-residential conversion: about this section

This section provides guidance on when major interest grants in buildings converted to a residential use from a non-residential one are zero-rated. Eligible conversions are known as ‘non-residential conversions’.

The zero rate only applies to major interest grants in buildings that, following conversion, are:

• ‘designed as a dwelling or number of dwellings’ (VCONST14100)

or

• intended for use solely for a ‘relevant residential purpose’ (VCONST15000).

The zero rate does not apply to buildings intended for use, after conversion, for a ‘relevant charitable purpose’.

There are occasions when the grant will need to be apportioned (VCONST04900).