VCONST10100 - Zero-rating major interest grants in substantially reconstructed ‘protected buildings’: basic conditions for zero-rating major interest grants in substantially reconstructed protected buildings

The basic conditions for zero-rating the sale or long lease of substantially reconstructed protected buildings are set out in Notice 708 Buildings and construction. The legal basis for those conditions, and where further guidance on their interpretation can be found, is as follows:

Condition	Relevant law (all references are to VATA 1994, Schedule 8, Group 6 unless otherwise stated)	Guidance
1 - Work is carried out to a ‘protected building’	Item 1. Note 1.	VCONST08200
2 - The protected building is ‘substantially reconstructed’	Item 1. Note 4.	VCONST10300
3 - A grant of a major interest in the building is made	Item 1. VATA 1994, Section 96	VCONST03200
4 - For tenancies, the payment is a premium or first payment of rent	Note 3. VATA 1994, Schedule 8, Group 5, Note 14.	VCONST10200\nVCONST10400
5 - The building is not a holiday home	Note 3. VATA 1994, Schedule 8, Group 5, Note 13.	VCONST10500
6 - The grantor has ‘person substantially reconstructing’ status	Item 1.	VCONST10600
7 - The grant is the first major interest in the building	Item 1.	VCONST10700
8 - Where necessary, a valid certificate is held	Note 3. VATA 1994, Schedule 8, Group 5, Note 12.	VCONST18000