In the summary of responses to the Simplifying the VAT Land Exemption consultation, which focused on current VAT rules related to land and properties owned by businesses, the government stated that it is to discuss further the implications of making most supplies of land subject to VAT with a limited number of exceptions.

However, the government stated that this would be ‘the most challenging to develop and introduce’ in the short to medium term, so it wants to ‘understand fully’ the challenges and consequences before making any decisions.

The government is going to explore whether it is possible to establish a workable definition of ‘short term’ and ‘minor interests’ with a view to making such supplies subject to VAT.

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