Exemption: European concept of 'leasing or letting of immovable property': introduction
As explained in VATLP05300, the UK land exemption should be interpreted, as far as it is possible to do so, as having a meaning that is consistent with the European legislation on which it is based.
For the majority of transactions, you should be able to establish whether they fall within the scope of the land exemption by referring to the examples in Notice 742 Land and property.
Doubt is most likely to arise in cases where a ‘licence to occupy’ is purported to have been granted [see VATLP05600] and the situation is not clearly covered in Notice 742. In such cases, to determine whether there is a ‘licence to occupy’ for the purpose of Group 1, Schedule 9, you need to establish whether the transaction meets the definition of the equivalent European concept, a ‘leasing or letting of immovable property’.