The Government is to extend the scope of the VAT cut on apartments to purpose-built student accommodation and possibly to forward-funding deals.

To boost the viability of apartment construction, the Government lowered the VAT rate on new-build apartments from 13 to 9 per cent in the budget.

The lower rate does not, however, apply to forward-funding arrangements, where an investor agrees to buy finished apartment units from a developer in advance of completion which, for VAT purpos

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