Approved alterations to listed buildings – The end of zero rating

Posted on 21st April 2016 by Streets


Image to represent Approved alterations to listed buildings – The end of zero rating

HMRC argue that the rules need changing because the availability of zero rating gives owners an incentive to change their building rather than to repair plus the borderline between repairs and alterations is a cause of much confusion resulting in a high volume of taxpayer queries and errors. More cynical readers may think that the estimated VAT saving for the Treasury of £100M per year may have more than a little to do with this change.

This is bad news for many people. It is not just wealthy individuals who may live in a listed country pile. Many ordinary families and charities will be adversely affected. There is some relief for those with listed places of worship as the existing scheme administered by the Department for Culture, Media and Sport is to be extended to allow an increased grant claim to reflect the additional VAT due on works of approved alterations carried out from 1st October 2012.

There will be anti avoidance measures to prevent the owners of listed buildings from entering into pre-payment schemes with a view to having work invoiced prior to it being done. Where there are binding contracts for the work already in place that were entered into prior to Budget day (21st March) then the availability of zero rating will continue through to 31st March 2013.

If you are a householder or charity who has a listed building that requires some alterations to be carried out in the near future you might want to consider whether you might arrange to have the work done sooner rather than later.

For further details please contact info@streetsweb.co.uk alternatively please call 0845 880 0320.


No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.


Expert insight and news straight
to your inbox

Related Articles


Settling energy disputes

Business owners that are in dispute with their energy suppliers will be interested in the free support on offer from the Energy Ombudsman. In a recent press release the Department for Energy Security and Net Zero confirmed the


COVID Bounce Back abuse

The Insolvency Service has recently published information confirming that a total of 831 company directors were banned in 2023-24 for Covid support scheme abuse, up more than 80% on the previous year, and that the average length of director


VAT retail scheme

VAT retail schemes are a special set of schemes used by retail businesses to account for VAT. The schemes are used by businesses that sell a significant amount of low value and/or small quantity items to the public with different VAT liabilities. The use of the schemes can save ...


You might also be interested in...