Transitional VAT rules widened for new student buildings
HMRC have introduced revised transitional rules following the axing of VAT concessions for the construction of student accommodation and dining halls and kitchens for students and school pupils.
The construction of a building intended for use solely for a relevant residential purpose is zero rated, as is the first grant of a major interest in such a building by the constructor. The user must provide a certificate to the builder or developer as evidence that the building is intended to be used solely – at least 95% – for a relevant residential purpose …