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HMRC internal manual

VAT Construction

Changing the use of certificated buildings - buildings completed before 1 March 2011: when may a charge arise?

Basic conditions

The charge may arise when:

  • there has been a ‘relevant zero-rated supply’ under the Value Added Tax Act 1994, Schedule 8, Group 5 (VCONST20200)


  • within 10 years of completion, the building is put to a non-qualifying use - that is, a use that isn’t solely for a relevant residential or relevant charitable purpose.

When is a building put to a non-qualifying use?

A building can be put to a non-qualifying use in one of two ways. The owner, who received the zero-rated supplies:

  • makes a grant (sale, lease, licence, and so on) in the whole or part of the building to a person who will use it for non-qualifying purposes (VCONST20500)


  • uses the building him or herself for non-qualifying purposes (VCONST20600).