VCONST10500 - Zero-rating major interest grants in substantially reconstructed ‘protected buildings’: holiday homes

Exclusion from zero-rating

For the purposes of the zero rate on grants of major interests, a holiday home is a building designed as a dwelling or a number of dwellings where residency throughout the year or use as a principle private residence is prevented.

The first grant of a major interest in such a holiday home that has been substantially reconstructed is exempt.

The legal basis for excluding the grant of holiday homes from zero-rating is the Value Added Tax Act 1994, Schedule 8, Group 5, Note 13.

Applying Note 13 to residence restrictions

The guidance at VCONST03420 applies in the same way to this section as it does to that section.

Use ‘for the whole of the year’

The guidance at VCONST03430 applies in the same way to this section as it does to that section.

What ‘principal private residence’ means

The guidance at VCONST03440 applies in the same way to this section as it does to that section.