Supply of property

This section deals with the supply of property that was completed on or after 1 July 2008, and the supply of properties that were on hand, but not completed on that date.

Supplies of properties that were on hand on 1 July 2008, but were completed prior to that date, are dealt with in Freehold interests held prior to 2008 and Transitional properties and legacy leases.

From 1 July 2008, a supply of property, the development of which was completed on or after that date, is taxable in the following circumstances:

  • The first supply of a property which takes place within five years of the property being 'completed'.
  • The subsequent supplies of that property which take place within five years of the property being completed. However, if it has not been occupied for an aggregate of 24 months following completion, the supply is exempt.
  • The first supply of a residential property by a developer, regardless of when it was completed.

A supply of a developed, but incomplete property at the time of sale, is taxable for 20 years from the time development ceased.

Other supplies of property which come within the post July 2008 Value-Added Tax (VAT) provisions are exempt from VAT. However, where the supply is exempt, 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.