Apportionment for part-qualifying buildings: apportionment rules - reduced-rating
The law - Value Added Tax Act 1994, Schedule 7A, Group 6 (residential conversions)
Paragraph 1 of the notes to Group 6.
The law - Value Added Tax Act 1994, Schedule 7A, Group 7 (renovation and alteration of dwellings)
Paragraph 1 of the notes to Group 7.
Applying the apportionment rules
The rules do two things. It allows supplies that:
- only relate to the qualifying works to be reduced-rated
- relate to both qualifying and non-qualifying works to be apportioned so that the element relating to the qualifying works can be reduced-rated.