Section 15A — Value Added Tax Act 1994: Meaning of “exempt land”: the building occupation conditions

Meaning of “exempt land”: the building occupation conditions 15A 1 For the purposes of paragraph 15(3A), the building occupation conditions are met at any time (“the time in question”) if—

a the grant consists of or includes the grant of a relevant interest in a building, and b P does not, at the time in question, occupy—

i any part of the land that is not a building, or ii more than the maximum allowable percentage of any relevant building.

2 For the purposes of sub-paragraph (1)(b)(i) and (ii) occupation by a person connected with P is treated as occupation by P if that occupation is not wholly, or substantially wholly, for eligible purposes.

3 For the purposes of sub-paragraph (1)(b)(i) occupation by a person of—

a land used for the parking of cars or other vehicles, or b land that is within the curtilage of a building, is disregarded if the occupation is ancillary to the occupation by that person of a building.

4 In sub-paragraph (1)(b)(ii)— “the maximum allowable percentage” means— 2% where P is the grantor or a person connected with the grantor, and 10% where P is a development financier or a person connected with a development financier (but not also the grantor or a person connected with the grantor), and “relevant building”— means a building any relevant interest in which is included in the grant, other than any part of such a building in which, immediately before the grant, neither the grantor nor any person connected with the grantor held a relevant interest, but does not include any building P’s occupation of which arises solely by reference to any automatic teller machine of P.

5 The way in which occupation by a person of a building is measured for the purposes of sub-paragraph (1)(b)(ii) is to be determined in accordance with conditions specified in a public notice.

6 In this paragraph “relevant interest”, in relation to a building or part of a building, means any interest in, right over or licence to occupy the building or part. 6A Sub-paragraph (5) of paragraph 15 (determination of whether occupation “wholly, or substantially wholly” for eligible purposes to be by reference to criteria in public notice) applies for the purposes of this paragraph.

7 Sub-paragraphs (4) to (7) of paragraph 18 (meaning of “building”) apply for the purposes of this paragraph.