VCONST03580 - Zero-rating major interest grants in buildings: 鈥榩erson constructing a building鈥�: 'person constructing' and VAT groups

If a company within a VAT group is a 鈥榩erson constructing鈥� a building, then zero-rating can only apply to the grant of a major interest in the building to a person outside the VAT group when that company makes the grant.

Note: If a major interest in a building is granted to another member of the VAT group, 鈥榩erson constructing鈥� status is not transferred. But more than one company in a VAT group may have 鈥榩erson constructing鈥� status, for example if one company is the developer of a project and another is the main contractor.

You can find further information on supplies by members of VAT groups in

  • VCONST03700
  • Section 4.5.3 of Buildings and construction
  • the V1-28: Registration guidance - Part 1
  • the V1-28: Registration guidance - Part 2A
  • the V1-28: Registration guidance - Part 2B.