Disposal of interest or change of use following relevant zero-rated supplyU.K.
[F1[F236.(1)Paragraph 37 applies on each occasion during the relevant period when—
(a)there is an increase in the proportion of the relevant premises falling within sub-paragraph (2) or (3), and
(b)as a result, the proportion of the relevant premises so falling (“R2”) exceeds the maximum proportion of those premises so falling at any earlier time in the relevant period (“R1”).
(2)The relevant premises fall (or part of the relevant premises falls) within this sub-paragraph if P has, since the beginning of the relevant period, disposed of P’s entire interest in the relevant premises (or part).
(3)The relevant premises fall (or a part of the relevant premises falls) within this sub-paragraph if—
(a)those premises do not (or that part does not) fall within sub-paragraph (2), and
(b)those premises are (or that part is) being used for a purpose that is neither a relevant residential purpose nor a relevant charitable purpose.
(4)Sub-paragraph (5) applies where—
(a)only a proportion of the use of the relevant premises (or the use of a part of those premises) is for a relevant residential purpose or a relevant charitable purpose, and
(b)that use is not confined to a part of those premises (or of that part) which is used solely for a relevant residential purpose or a relevant charitable purpose.
(5)Where this sub-paragraph applies, sub-paragraph (3) applies as if—
(a)the same proportion of the relevant premises (or part) were being used for a relevant residential purpose or a relevant charitable purpose, and
(b)the remainder of the relevant premises (or part) were being used for a purpose that is neither a relevant residential purpose nor a relevant charitable purpose.
(6)Where P is a charity using the relevant premises (or a part of the relevant premises) as a village hall or similarly in providing social or recreational facilities for a local community the premises are (or the part is) treated as being used for a relevant charitable purpose whether or not any person in occupation is using the premises (or part) for a relevant charitable purpose.]]
Textual Amendments
F1Sch. 10 substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2008 (S.I. 2008/1146), arts. 1(1), 2 (with Sch. 2)
F2Sch. 10 paras. 35-37 substituted (with effect in accordance with art. 3 of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2011 (S.I. 2011/86), arts. 1, 8