The Value Added Tax (Construction of Dwellings and Land) Order 1990

3.  Group 1 of Schedule 6 to the Value Added Tax Act 1983(1) shall be varied as follows–

(a) for paragraph (d) of item 1 there shall be substituted the following–

“(d) the grant of any interest in, right over or licence to occupy holiday accommodation;”;

(b) for Note (10) there shall be substituted the following–

“(10) Paragraph (d) includes–

(a) any grant excluded from item 1 of Group 8 of Schedule 5 to this Act by Note (7) in that Group;

(b) any supply made pursuant to a tenancy, lease or licence under which the grantee is or has been permitted to erect and occupy holiday accommodation.”;

(c) after Note (10) there shall be inserted the following two Notes (10A) and (10B)–

“(10A) Paragraph (d) does not include a grant in respect of a building or part which is not a new building of–

(a) the fee simple, or

(b) a tenancy, lease or licence to the extent that the grant is made for a consideration in the form of a premium.

(10B) “Holiday accommodation” includes any accommodation in a building, hut (including a beach hut or chalet), caravan, houseboat or tent which is advertised or held out as holiday accommodation or as suitable for holiday or leisure use, but excludes any accommodation within paragraph (c).”.

(1)

Group 1 was amended by paragraph 4 of Schedule 3 to the Finance Act 1989.