VCONST04430 - Zero-rating major interest grants after a non-residential conversion: is the building the subject of a 바카라 사이트˜non-residential conversion바카라 사이트™: designed or adapted for residential use
A common misunderstanding is that the VAT definition of 바카라 사이트˜designed as a dwelling바카라 사이트™ (contained in Group 5, Note 2 - VCONST14100), which is used to determine the status of a building after its conversion, is used to decide its status before conversion. For the reasons stated in VCONST04450, this is not the case.
A building is designed for residential use if that was its original purpose when constructed. For example, in Neil and Jane Hicking (VTD 17117) the fact that the dwelling was dilapidated and subject to a 바카라 사이트˜closing order바카라 사이트™ under the Housing Act did not make it 바카라 사이트˜non-residential바카라 사이트™.
Similarly, in James Halcro-Johnston (VTD 17147), it was decided that the absence of central heating, running hot water, and sanitation in a Scottish croft did not make the croft 바카라 사이트˜non-residential바카라 사이트™.
In both cases the buildings were originally constructed for use as dwellings and had been used as such in the recent past.
Some buildings have a dual use when constructed. For example a public house typically includes living accommodation for the landlord or licensee. The living accommodation of such buildings is designed or adapted for residential use. Therefore, subject to its past 바카라 사이트˜use바카라 사이트™ (explained at VCONST04460), it is not non-residential. VCONST04500 explains the implications of converting the remaining, non-residential, parts of such properties.
A building is adapted for residential use when it has been changed, altered or transformed. This was confirmed in the case of Davison v Birmingham Industrial Co-operative Society ([1920] 90 LJKB 206), a case under the Housing Act 1919. The work need not have been extensive.