VAT on Land & Property - Construction, Conversion & Supply

Introduction

VAT on land and property can be complex and, given the value of many transactions, getting it wrong can be costly.

In this six-part webinar series, expert speaker Gwen Ryder will explain how VAT applies to the construction, conversion and supply of commercial and residential property.

Updated for 2027, this series covers the option to tax, transactions between landlords and tenants, transfers of going concerns, partial exemption and the VAT Capital Goods Scheme.

It is aimed at accountants responsible for the VAT treatment of land and property transactions, as well as accountants and lawyers who advise on them. A basic understanding of VAT is assumed.

What You Will Learn

This webinar series will cover the following:

Module 1 - Construction

• A reminder of the VAT fundamentals, including the meaning of supply and consideration
• How to determine the correct rate of VAT to charge
• The impact of partial exemption and non-business income
• Zero rating for construction services relating to new dwellings and buildings intended for a relevant residential purpose (RRP) or relevant charitable purpose (RCP)
• Certification requirements for RRP and RCP buildings and penalties for incorrect use of certificates
• Common pitfalls, including business use exceeding 5% in a building intended for non-business use, and how the 10-year payback period works

Module 2 - Conversions, the 5% Rate & the Domestic Reverse Charge

• Tax points in the construction industry
• The VAT consequences of a change of intention or use, including payback and clawback
• VAT recovery on standard-rated construction costs and the self-supply rules
• Zero rating for qualifying conversions by housing associations of non-residential buildings into dwellings, RRP or RCP buildings
• The 5% rate for qualifying conversions and other works
• An overview of the domestic reverse charge for certain construction and conversion works

Module 3 - Supplies of Land & Property

• The VAT treatment of land and property supplies under Group 1 of Schedule 9 to the Value Added Tax Act 1994, including the accompanying notes
• Key terms, grants and licences, and which supplies are standard-rated in their own right
• Certification for zero-rated supplies and common mistakes
• The new zero rate for qualifying sales of land for social housing
• ‘Golden brick’ transactions and how ‘person constructing’ status can continue

Module 4 - The Option to Tax

• What the option to tax covers, the types of option and the relevant time limits
• When permission is required and when automatic permission applies
• The main ‘disapplication’ and anti-avoidance rules

Module 5 - Other Supplies & Transfers of Going Concerns

• Transactions between landlords and tenants, including lease inducements, dilapidations and reverse surrenders
• Transfers of going concerns involving property, including property rental businesses

Module 6 - Partial Exemption & the VAT Capital Goods Scheme

• The standard and special methods for partial exemption, with worked calculations
• How the VAT Capital Goods Scheme (CGS) operates, with worked examples
• Changes to the CGS from July 2026
• What to do with rolling refurbishments
• CGS example calculations