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HMRC internal manual

VAT Construction

Certificates for qualifying buildings: limitations on zero-rating and reduced-rating

Building work

Construction services are only zero-rated or reduced-rated when supplied to a person who intends to use the building solely for a qualifying purpose. Therefore, subcontractors cannot make use of the certificate and must standard-rate their supply.

First grant of a major interest

For grants of a major interest, it is only necessary that the recipient of the grant confirm that the building is intended for use solely for a qualifying purpose.