OK, not realy looked into it as yet, much.
A Ltd Co that buy's and develops property/land.
First project was to re-develope an old property into two dwellings, 5% rated.
However, this left a piece of land that can be built on, eventualy with planning permission.
So my thought is that the land is subject to 20% vat on sale.
However if the Co developed the land, then they would pay 0% vat, as there is no foundations in place.