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  2. Vatlp24400 - option to tax anti-avoidance - funding and financing: how to approach a funding question - key conditions - hmrc internal manual

Vatlp24400 - option to tax anti-avoidance - funding and financing: how to approach a funding question - key conditions - hmrc internal manual

Vatlp24400 - option to tax anti-avoidance - funding and financing: how to approach a funding question - key conditions - hmrc internal manual

Vatlp24400 - option to tax anti-avoidance - funding and financing: how to approach a funding question - key conditions - hmrc internal manual

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VATLP24400 - OPTION TO TAX ANTI-AVOIDANCE - FUNDING AND FINANCING: HOW TO APPROACH A FUNDING QUESTION - KEY CONDITIONS In any situation, a person can only be deemed to have been responsible


for financing a development in the context of the legislation if two key conditions are met: * at the time the finance is provided or the agreement is entered into to provide the finance the


financier must intend or expect that one of the three persons (owner, financier or somebody connected to either of them) will occupy the building for a non-taxable purpose (either


non-business or exempt purpose), and * the funds must be for the purpose of financing the purchase, construction or refurbishment of a building which qualifies as a capital item for its


owner. If either one of these conditions is not met, a person will not be deemed to be the financier even if he has provided the funds to meet part or all of the costs of the development.


Each of these conditions is explained in more detail in the following paragraphs. Print this page