The Value Added Tax (Buildings and Land) Order 2010

Citation, commencement and effect

1.  This Order may be cited as the Value Added Tax (Buildings and Land) Order 2010 and shall come into force on 1st of April 2010.

2.  Articles 5 and 6 of this Order shall have effect in relation to supplies made on or after 1st April 2010 other than a supply arising from a grant made before 1st April 2010.

Amendment of Schedule 10 to the Value Added Tax Act 1994

3.  Schedule 10 to the Value Added Tax Act 1994(1) is amended as follows.

4.—(1) In paragraph 10(3) (relevant housing associations)—

(a) before paragraph (a) insert—

“(za) a private registered provider of social housing,”(2),

(b) omit the words “English or” from paragraph (a).

(2) Until the coming into force of provision defining “private registered provider of social housing” in enactments and instruments generally, that expression in paragraph 10(3) of Schedule 10 to the Value Added Tax Act 1994 means persons listed in the register of providers of social housing maintained under Chapter 3 of Part 2 of the Housing and Regeneration Act 2008(3) who are not local authorities within the meaning of the Housing Associations Act 1985(4).

5.  After paragraph 15(3) (meaning of “exempt land”: basic definition) insert—

“(3A) A person (“P”) who—

(a) is within paragraph (c) or (d) of sub-paragraph (3) but not within paragraph (a) or (b) of that sub-paragraph, and

(b) is in occupation of the land at any time before the end of the relevant adjustment period as respects that land,

is treated for the purposes of sub-paragraph (2) as not in occupation of the land at that time if the building occupation conditions are met at that time.”.

6.  After paragraph 15 insert—

“Meaning of “exempt land”: the building occupation conditions

15A.— (1) For the purposes of paragraph 15(3A), the building occupation conditions are met at any time (“the time in question”) if—

(a) the grant consists of or includes the grant of a relevant interest in a building, and

(b) P does not, at the time in question, occupy—

(i) any part of the land that is not a building, or

(ii) more than 10% of any relevant building.

(2) For the purposes of sub-paragraph (1)(b)(i) and (ii) occupation by a person connected with P is treated as occupation by P.

(3) For the purposes of sub-paragraph (1)(b)(i) occupation by a person of—

(a) land used for the parking of cars or other vehicles, or

(b) land that is within the curtilage of a building,

is disregarded if the occupation is ancillary to the occupation by that person of a building.

(4) In sub-paragraph (1)(b)(ii) “relevant building”—

(a) means a building any relevant interest in which is included in the grant, but

(b) does not include any part of such a building in which, immediately before the grant, neither the grantor nor any person connected with the grantor held a relevant interest.

(5) The way in which occupation by a person of a building is measured for the purposes of sub-paragraph (1)(b)(ii) is to be determined in accordance with conditions specified in a public notice(5).

(6) In this paragraph “relevant interest”, in relation to a building or part of a building, means any interest in, right over or licence to occupy the building or part.

(7) Sub-paragraphs (4) to (7) of paragraph 18 (meaning of “building”) apply for the purposes of this paragraph.”.

7.  In paragraph 23 (revocation of option: the “cooling off” period) omit sub-paragraph (1)(b).

Dave Watts

Tony Cunningham

Two of the Lords Commissioners of Her Majesty’s Treasury