HMRC have taken heed of the responses to their Budget change consultations and have allowed a small measure of relaxation in the transitional arrangements relating to the cessation of zero rating for listed buildings.

If you recall, zero rating will cease as at 30 September 2012. The first exception to this was a transitional arrangement (6 months’ extra) being allowed to those who just happened to have a written contract in place, with a contractor, prior to the Budget (23/3/2102). They have now relented, and will also now zero rating to continue, where applicable, to anyone who has applied for listed building consent prior to the Budget. Zero rating, under this concession, will continue until 30 September 2015!

There isn’t much in the way of small print, but if you need to discuss it, please let me know.

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2 comments on “A wee bit of good news again!

  • Hello there. We are looking at a barn conversion where the original LIsted building consent was granted in 2007. It was then extended in 2013. Does this mean that we can still go with the zero rated VAT? Would be grateful if you could advise.

  • Hi.
    This is a very wide subject, not least because HMRC would be looking to see if the barn was going to become a free-standing dwelling at the end of the day – as against a barn in the grounds of another property. As regards the listed building relief, I’d need to know whether being “extended” meant that this was a fresh application in 2013. If it does qualify, not all of the work will necessarily qualify, as anything by way of repair will be liable to VAT. Additionally, there is the 5% VAT rate that should apply, for repairs mainly. And then – if you’re going to live in it, you may be able to reclaim most of the VAT that you pay, from HMRC. I’d suggest that this is a case where you would be best to get specific advice, based on the full facts. Perhaps email me if you want to go down this route?
    Regards
    Dave

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