Where land and buildings are one of the assets transferred, the VAT-free non-supply treatment (explained at ¶54-150) does not apply to the element of land and buildings if:
(1)either (a) the vendor (the transferor) has opted to tax the land under VATA 1994, Sch. 10, para. 2 (¶35-000ff.) or (b) the commercial building and any civil engineering works are uncompleted or new and the freehold is transferred.
A building or civil engineering work is ‘new’ if it was completed less than three years before the transfer; and