Supply of property

This section deals with the supply of property which:

• is undeveloped
• is developed to completion on or after 1 July 2008
• is developed but the development is not complete on 1 July 2008.

For information on the supply of properties that were on hand on 1 July 2008, and were developed to completion prior to that date, please see:

• Freehold interests held prior to 2008
• and
• Transitional properties and legacy leases.

From 1 July 2008, the following supplies of property, developed to completion on or after that date, are taxable:

• The first supply of a property which takes place within five years of completion of development
• Subsequent supplies of that property which take place within five years of completion of development. However, if the property has been occupied for an aggregate of at least 24 months following completion, such subsequent supplies are exempt
• The first supply of a residential property by a developer as part of a property development business. This is regardless of when development is complete.

A supply of a property which is developed, but not to completion, remains taxable for 20 years from cessation of development.

Other supplies of property which come within the post July 2008 Value-Added Tax (VAT) provisions are exempt from VAT. However, a vendor and purchaser may, in certain circumstances, exercise a joint option to tax the supply of such property.

Further guidance contains more detailed information on the VAT treatment of the supply of property.