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Purpose-built house

24 September 2013
Issue: 4421 / Categories: Forum & Feedback , VAT

Two properties are being developed as student accommodation. One will have clusters of bedrooms, with en-suite facilities, but a shared living room and kitchen. The other will have self-contained studios

My client is proposing to develop two properties for use as student accommodation. One will contain clusters of three four five or six bedrooms with a separate and shared living/kitchen room. There is an en-suite WC wash handbasin and bath/shower to each room. The entire cluster is contained behind an access door to a common access corridor.

The other property will comprise self-contained studios with bed kitchen and living rooms and en-suite WC wash handbasin and shower/bath. Each has a door to the common access corridor.

]One building will be constructed on a bare site that has been purchased; the other will be converted from an existing office building where planning permission for use as student accommodation has been obtained.

I am aware that a “dwelling” for VAT purposes has to be “self-contained” – are these student rooms “dwellings” or is the whole...

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