Paragraph 1 C1

relates to a building intended for use solely for a relevant residential purpose or a relevant charitable purpose or part of such a building; and

is zero-rated, in whole or in part, by virtue of Group 8 of Schedule 5 to this Act.

one or more relevant zero-rated supplies relating to a building (or part of a building) have been made to any person;

within the period of ten years beginning with the day on which the building is completed, the person grants an interest in, right over or licence to occupy the building or any part of it (or the building or any part of it including, consisting of or forming part of the part to which the relevant zero-rated supply or supplies related); and

after the grant the whole or any part of the building, or of the part to which the grant relates, (or the whole of the building or of the part to which the grant relates, or any part of it including, consisting of or forming part of the part to which the relevant zero-rated supply or supplies related) is notintended for use solely for a relevant residential purpose or a relevant charitable purpose.

by reason of its intended use gave rise to the relevant zero-rated supply or supplies; and

is not intended for use solely for a relevant residential purpose or a relevant charitable purpose after the grant,

one or more relevant zero-rated supplies relating to a building (or part of a building) have been made to any person; and

within the period of ten years beginning with the day on which the building is completed, the person uses the building or any part of it (or the building or any part of it including, consisting of or forming part of the part to which the relevant zero-rated supply or supplies related) for a purpose which is neither a relevant residential purpose nor a relevant charitable purpose.

by reason of its intended use gave rise to the relevant zero-rated supply or supplies; and

is used otherwise than for a relevant residential purpose or a relevant charitable purpose,

the supply shall be taken to be a taxable supply which is not zero-rated by virtue of Group 8 of Schedule 5 to this Act (if it would not otherwise be such a supply); and

the value of the supply shall be such that the amount of tax chargeable on it is equal to the amount of the tax which would have been chargeable on the relevant zero-rated supply (or, where there was more than one such supply, the aggregate amount which would have been chargeable on them) had so much of the building as is mentioned in sub-paragraph (5) above not been intended for use solely for a relevant residential purpose or a relevant charitable purpose.