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Official guidance
VAT Construction

VCONST03200 · Zero-rating major interest grants in buildings: major interest grants

  • VCONST03210 · Meaning of ‘major interest’
  • VCONST03220 · Licences to occupy land
  • VCONST03230 · - Zero-rating major interest grants in buildings: major interest grants: break clauses
  • VCONST03240 · Time share and other leases which are not continuous
  • VCONST03250 · Assignments and surrenders
  • VCONST03260 · Lengthening the period of the lease
  1. Zero-rating major interest grants in buildings: major interest grants: contents
  2. - Zero-rating major interest grants in buildings: major interest grants: break clauses

VCONST03230 | - Zero-rating major interest grants in buildings: major interest grants: break clauses

From HM Revenue & Customs · VAT Construction

‘Break’ clauses offer the parties to a lease the option of terminating a lease at a given point of time before the lease expires. Such clauses do not prevent a lease from being a major interest grant.

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