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Building land with a building on it

27th Sep 2019
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Where land is supplied with an existing building which is shortly to be demolished, the supply remains a supply of a building and not a supply of building land. This was the conclusion of a European Court of Justice decision.

This is a helpful case to bookmark as it refers to a number of previous decisions involving supplies of land.

Application

In the UK many commercial properties are Opted to Tax. I understand around 60% of commercial properties are opted. Where the purchaser is a charity which intends to use the building, after re-development, for its charitable activities, then it can disapply the option to tax. This would NOT happen if the supply were one of land only since the charity cannot disapply the option on land. See Sch 10, para 7.

http://www.bailii.org/eu/cases/EUECJ/2019/C7118.html

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