VCONST03250 | Zero-rating major interest grants in buildings: major interest grants: assignments and surrenders

Assignments and surrenders can be zero-rated. This is confirmed by the Value Added Tax Act 1994, Schedule 8, Group 5, Note 1.

An assignment is the transfer of an interest in property, normally a lease, from one party to another. In cases involving Scottish property the term ‘assignation’ means the same as ‘assignment’.

‘Surrender’ is the giving up of the balance of a lease or tenancy by the tenant back to the immediate landlord. In cases involving Scottish property, the term ‘renunciation’ has a similar meaning.