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HMRC internal manual

VAT Construction

From
HM Revenue & Customs
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Zero-rating major interest grants after a non-residential conversion: is the building the subject of a ‘non-residential conversion’: how to apply Note 7

The following decision table will help you determine if a building or part of a building is non-residential:

Step Issue Action
     
1 Was the building (or part of the building), before the conversion, designed or adapted for residential use (VCONST04430)? Yes, go to step 2.
No, the building is ‘non-residential’.      
  2 Has the building (or part of the building) been constructed more than 10 years before the grant is made? Yes, go to step 3.
No, the building is ‘non-residential’.      
  3 Has the building (or part of the building) had a residential use in the previous 10 years before the grant is made. (VCONST04460)? Yes, the building is not ‘non-residential’.
No, the building is ‘non-residential’.

By residential use, we mean use:

  • as a dwelling (in other words a place where one lives, regarding and treating it as home (VCONST14000))

or

  • for a ‘relevant residential purpose’ (VCONST15000).