VCONST03700 – Zero-rating major interest grants in buildings: first major interest grant in, or in any part of, the building, dwelling or its site
Restriction to the ‘first’ major interest grant
Notice 708 Buildings and construction explains the extent to which zero rating is limited by the concept of ‘first major interest grant’.
First major interest grants and VAT Groups
For VAT Groups you can disregard any grants (including assignment or surrender) of a major interest in the building that take place within the VAT Group.
Note: The company making the grant to a person outside of the VAT Group must meet all other tests for zero rating, including being the ‘person constructing’ the building (VCONST03580).
