VCONST04100 - Zero-rating major interest grants after a non-residential conversion: basic conditions for zero-rating major interest grants after a non-residential conversion

The basic conditions for zero-rating the sale or long lease of a building after it has been subject to a non-residential conversion are set out in Notice 708 Buildings and construction. The legal basis for the conditions and where further guidance on their interpretation can be found is as follows:

Condition	Relevant law (all references are to VATA 1994, Schedule 8, Group 5 unless otherwise stated)	Guidance
1 - A grant of a major interest in the building is made	Item 1(b). VATA 1994, Section 96 (definition of ‘major interest’).	VCONST04200
2 - For tenancies, the payment is a premium or first payment of rent	Note 14.	VCONST04300
3 - The building is the subject of a ‘non-residential conversion’	Notes 7 to 9.	VCONST04400
4 - The building is not a holiday home	Note 13.	VCONST04600
5 - The grantor has ‘person converting status’	Item 1(b).	VCONST04700
6 - The grant is the first major interest grant in the building	Item 1(b)	VCONST04800
7 - Where necessary, a valid certificate is held	Note 12.	VCONST18000