Consultation tracker
VAT: Addressing borderline anomalies – including zero-rating of listed buildings
- Published: 21/03/12
- Deadline for responses: 18/05/12
This consultation is on the draft secondary legislation which were announced in Budget 2012 changes to address some apparently anomalous VAT borderlines.
Section 7 on approved Alterations to Listed Buildings will be of particular interest to charities and churches. This measure will remove the zero rate for alterations to protected buildings, mostly listed residential dwellings but also listed buildings used for charitable and other residential purposes. It does not apply to supplies of repairs and maintenance which are already taxable. For VAT purposes a protected building is a listed building or scheduled monument that is (or will become on completion of the work):
• a dwelling;
• a residential building such as a nursing home or student accommodation; or
• a building used by a charity for non-business purposes such as a place of worship, or as a village hall or similar.
Although works of repair and maintenance to protected buildings are standard–rated for VAT purposes, approved alterations to a “protected building” are zero-rated. Alterations to all other types of building are standard–rated. Zero-rating also applies to the first grant by a developer of a major interest in a substantially reconstructed protected building.
Please note that the deadline for responses has been extended to 18 May 2012. CTG will be submitting a response to this consultation based on feedback from members. We are also involved in detailed discussions with HMRC VAT and Buildings team and will update members on developments shortly. Please send your responses to Q 17-19 and your thoughts on the overall scheme to info@charitytax.info by 11 May 2012.
Section 7 on approved Alterations to Listed Buildings will be of particular interest to charities and churches. This measure will remove the zero rate for alterations to protected buildings, mostly listed residential dwellings but also listed buildings used for charitable and other residential purposes. It does not apply to supplies of repairs and maintenance which are already taxable. For VAT purposes a protected building is a listed building or scheduled monument that is (or will become on completion of the work):
• a dwelling;
• a residential building such as a nursing home or student accommodation; or
• a building used by a charity for non-business purposes such as a place of worship, or as a village hall or similar.
Although works of repair and maintenance to protected buildings are standard–rated for VAT purposes, approved alterations to a “protected building” are zero-rated. Alterations to all other types of building are standard–rated. Zero-rating also applies to the first grant by a developer of a major interest in a substantially reconstructed protected building.
Please note that the deadline for responses has been extended to 18 May 2012. CTG will be submitting a response to this consultation based on feedback from members. We are also involved in detailed discussions with HMRC VAT and Buildings team and will update members on developments shortly. Please send your responses to Q 17-19 and your thoughts on the overall scheme to info@charitytax.info by 11 May 2012.
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