VAT on Property (Changes arising from Finance Act 2009)

New rules for certain property transactions involving waivers of exemption came into effect on 3 June 2009. These new rules ensure that the VAT consequences of the sale, disposal or ending of a landlord’s interest in a property, which was subject to a waiver of exemption, are not deferred indefinitely.

Guidance material explaining the effects of these provisions has been published in Chapter 7B.1 of the VAT Manual.