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The basic plot

16 October 2012
Issue: 4375 / Categories: Forum & Feedback , VAT
A business comprises the sale of serviced plots of land, with roads and services, to self-builders. A suitable site for development is about to be purchased, but this will be subject to VAT

My client carries on a business of selling serviced land plots to self-builders.

By way of explanation and in its most basic form my client’s service involves locating a plot of land for say 10 houses buying the land and then providing the full infrastructure for example road and utilities to the plot.

Once this work has been carried out the plots are then sold on to self-builders.

An added service would be that my client can provide the shell of a house which is then fitted out by the self-builder.

The client has recently located a suitable site the land being owned by a supplier who maintains a significant land bank.

The supplier is likely to be charging VAT on the transaction although they are looking into this.

My view is that despite the land being sold on...

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