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Exemption

The basic principle in VATA 1994, Sch 9, Group 1 is that the grant of any interest in or right over land or licence to occupy land is exempt unless it is:

1. Ìý

   (a)ÌýÌýÌýÌý excluded from exemption (and therefore standard-rated) under VATA 1994, Sch 9, Group 1, Item 1, paras (a) to (n), or

2. Ìý

   (b)ÌýÌýÌýÌý zero-rated under either VATA 1994, Sch 8, Group 5, or Group 6, or

3. Ìý

   (c)ÌýÌýÌýÌý subject (with certain exceptions) to the option to tax (VATA 1994, Sch 10, Part 2)

The default position is therefore that where the grant of any interest in property is made, it is exempt unless it can be made to fall outside VATA 1994, Sch 9, Group 1.

The question of what is, or is not, the letting or leasing of land can be difficult to determine, particularly when the supply contains different elements. For example, in the case of John Window (2001) VAT Decision 17186, the VAT & Duties tribunal ruled that livery services supplied with stabling