Alterations to Listed Buildings
The law pre budget March 2012
Zero-rating applies to approved alterations to a listed building
The zero-rating applies to buildings used as
- a dwelling,
- a residential building such as a nursing home or student accommodation,
- a building used by a charity for non-business purposes such as a place of worship or as a village hall or similar.
The Change to the VAT Legislation
The new legislation that will come into effect from 1 October 2012 is that construction services and building materials used in the course of an approved alteration is standard rated (currently 20%).
However there are transitional arrangements so that where a contract was entered into;
- before 21 March 2012 or
- in the case of a substantial reconstruction; at least 10 per cent (measured by reference to cost) of the reconstruction of the protected building was completed before 21 March 2012
Any supply of building materials or construction services made from 21 March 2012 as a result of that contract can continue to be zero-rated until 30 September 2015.