
1 
This Order may be cited as the Value Added Tax (Construction of Buildings) Order 1987 and shall come into force on 21st May 1987.
2 
Group 8of Schedule 5 to the Value Added Tax Act 1983 shall be vane
(a) by substituting for Note (1A) the following Note—“
(IA) Any reference in item 2 or the following Notes to the construction of any building or the construction of any civil engineering work does not include a reference to
(a) the conversion, reconstruction, alteration or enlargement of any existing building or civil engineering work; or
(b) any extension or annexation to an existing building which provides for internal access to the existing building or of which the separate use, letting or disposal is prevented by the terms of any covenant, statutory planning consent or similar permission;
 and the reference in item 1 to a person constructing a building shall be construed accordingly.;”
(b) by inserting in Note (2A) after paragraph (c), the following—“
(d) carpets or carpeting materials.”
3 
Article 8 of the Value Added Tax (Special Provisions) Order 1981shall be varied—
(a) by inserting in paragraph (1) after the words “taxable person constructing a building” and before the words “for the purpose of granting a major interest in it”, the following words—“or effecting works to any building, in either case;”
(b) by inserting in paragraph (2) after sub-paragraph (c) the following subparagraph—“
(d) carpets or carpeting materials.”.
Michael Neubert
Mark Lennox-Boyd
Two of the Lords Commissioners of Her Majesty’s Treasury
29th April 1987