7. Supply of services comprising use of immovable goods for private or non-business purposes

(1) In this Regulation “private use proportion”, in relation to immovable goods, means the proportion that correctly reflects the extent to which those goods are used for private or non-business purposes in the relevant taxable period.

(2) Where section 27(2) of the Act applies in relation to immovable goods, being immovable goods acquired or developed by an accountable person before 1 January 2011, the private use proportion shall be calculated in accordance with the following formula:

where—

A is equal to the floor area of that part of the immovable goods that is used for private or non-business purposes in the relevant taxable period, and

B is equal to the total floor area of those immovable goods.

(3) The amount on which tax is chargeable in relation to the supply of services referred to in section 27(2) of the Act in any taxable period shall be calculated in accordance with the following formula:

where—

C is the amount on which tax is chargeable on the acquisition or development of the immovable goods, and

D is the private use proportion calculated in accordance with the formula in paragraph (2).

(4) The rate of tax applicable to the supply of services referred to in paragraph (3) is the rate specified in section 46(1)(a) of the Act.