We received a budget update from the Listed Building Owners Club –
The basic position is that all work carried out prior to 1 October will still benefit from zero rating, where applicable. Work carried out thereafter will be liable to VAT at 20%. There are, however, a couple of variations/conditions:
Any work, for which the contract has been placed, prior to 21st March 2012, will still be zero rated up until 21 March 2013.
There will be anti-avoidance measures put in place, such that if someone invoices work in September (no VAT), but carries out the work after 1 October, HMRC will be able to charge 20% on that work. This would also apply if someone simply placed a deposit prior to October for work carried out afterwards.
Works unaffected that still qualify for the 5% VAT rate:
Empty for 2 years prior to work starting.
Converting a property from two dwellings into one, or vice versa. In fact any conversion resulting in a different number of dwellings. Best example was one where a staff flat, which was not needed, all repair/refurb work changed from 20% to 5% VAT.
Converting from commercial use to residential use.
Also unaffected will be ‘Self build’ claims. (VAT refund scheme for properties empty for 10 years or more, or subject to a commercial to residential conversion.)
We hope that this is of help but if you’d like any other information please feel free to contact us on 01795 844939
We shall publish a full summary in the next issue of our club magazine “Listed Heritage”.
This is a complicated area that requires sepcialist advice – discover more at the Listed Property Owners Club