SCHEDULE 10 DEEMED SUPPLY IN BALHOUSIE

摘要

Where the construction or acquisition of a building has been zero rated for use for relevant residential or relevant charitable purposes, there are deemed supply provisions to deal with change of use and outright disposal within the first ten years of the use of the building. Balhousie (UKUT0410) sold such a premises, but immediately leased it back. The transaction was intended as a unity and there was never any prospect of the taxpayer leaving the building as such. However, HMRC argued that there was a taxable deemed supply on the basis of the disposal of the taxpayer's 'entire interest'.