Finance Act 1989

Exemptions U.K.

4 (1) For Group 1 (land) of Schedule 6 (exemptions) to the M1 Value Added Tax Act 1983 there shall be substituted—

“Group 1 – Land

Item No.

1 The grant of any interest in or right over land or of any licence tooccupy land, other than—

(a) the grant of the fee simple in—

(i) a building which has not been completed and which is neither designed asa dwelling or number of dwellings nor intended for use solely for a relevantresidential purpose or a relevant charitable purpose;

(ii) a new building which is neither designed as a dwelling or number ofdwellings nor intended for use solely for a relevant residential purpose ora relevant charitable purpose after the grant;

(iii) a civil engineering work which has not been completed;

(iv) a new civil engineering work;

(b) the grant of any interest, right or licence consisting of a right to takegame or fish;

(c) the provision in an hotel, inn, boarding house or similar establishmentof sleeping accommodation or of accommodation in rooms which are provided inconjunction with sleeping accommodation or for the purpose of a supply ofcatering;

(d) the provision of holiday accommodation in a house, flat, caravan,houseboat or tent;

(e) the provision of seasonal pitches for caravans, and the grant offacilities at caravan parks to persons for whom such pitches are provided;

(f) the provision of pitches for tents or of camping facilities;

(g) the grant of facilities for parking a vehicle;

(h) the grant of any right to fell and remove standing timber;

(i) the grant of facilities for housing, or storage of, an aircraft or formooring, or storage of, a ship, boat or other vessel;

(j) the grant of any right to occupy a box, seat or other accommodation at asports ground, theatre, concert hall or other place of entertainment; and

(k) the grant of facilities for playing any sport or participating in anyphysical recreation.

Notes:

(1) “Grant” includes an assignment, other than an assignment ofan interest made to the person to whom a surrender of the interest could bemade.

(2) A building shall be taken to be completed when an architect issues acertificate of practical completion in relation to it or it is first fullyoccupied, whichever happens first; and a civil engineering work shall be takento be completed when an engineer issues a certificate of completion inrelation to it or it is first fully used, whichever happens first.

(3) Notes (2) to (6) to Group 8 of Schedule 5 to this Act apply in relationto this Group as they apply in relation to that Group.

(4) A building or civil engineering work is new if it was completed less thanthree years before the grant.

(5) Subject to Note (6), the grant of the fee simple in a building or workcompleted before 1st April 1989 is not excluded from this Group by paragraph(a)(ii) or (iv).

(6) Note (5) does not apply where the grant is the first grant of the feesimple made on or after 1st April 1989 and the building was not fullyoccupied, or the work not fully used, before that date.

(7) Where a grant of an interest in, right over or licence to occupy landincludes a valuable right to take game or fish, an apportionment shall be madeto determine the supply falling outside this Group by virtue of paragraph (b).

(8) “Similar establishment” includes premises in which there isprovided furnished sleeping accommodation, whether with or without theprovision of board or facilities for the preparation of food, which are usedby or held out as being suitable for use by visitors or travellers.

(9) “Houseboat” includes a houseboat within the meaning of Group11 of Schedule 5 to this Act.

(10) “Holiday accommodation” includes any accommodation advertisedor held out as such.

(11) A seasonal pitch is a pitch—

(a) which is provided for a period of less than a year; or

(b) which is provided for a year or a period longer than a year but which theperson to whom it is provided is prevented by the terms of any covenant,statutory planning consent or similar permission from occupying by living ina caravan at all times throughout the period for which the pitch is provided.

(12) “Mooring” includes anchoring or berthing.

(13) Paragraph (k) shall not apply where the grant of the facilities isfor—

(a) a continuous period of use exceeding twenty-four hours; or

(b) a series of ten or more periods, whether or not exceeding twenty-fourhours in total, where the following conditions are satisfied—

(i) each period is in respect of the same activity carried on at the sameplace;

(ii) the interval between each period is not less than one day and not morethan fourteen days;

(iii) consideration is payable by reference to the whole series and is evidencedby written agreement;

(iv) the grantee has exclusive use of the facilities; and

(v) the grantee is a school, a club, an association or an organisationrepresenting affiliated clubs or constituent associations.”

(2) In consequence of the amendment made by sub-paragraph (1) above, inparagraph 9(1) of Schedule 4 to the M2 Value Added Tax Act1983 for “(a)” there shall be substituted “(c)”.

Marginal Citations

M1 1983 c.55.

M2 1983 c. 55.