Last chance for alterations to listed buildings before zero vat rate is withdrawn
20 July 2012
It was announced in the budget in March that the zero-rate of VAT will be withdrawn for “approved alterations” to listed buildings from the 1st October 2012.
“There are some transitional arrangements in place, but essentially this is now the last opportunity to have the work done at the zero-rate of VAT” urges Crispin Mahony of Savills Winchester. To comply with the current rules the building must be used for residential or charitable purposes, the work must be an alteration not a repair, and the work must require and receive listed building consent.
“With the standard consultation period for listed building consent lasting eight weeks an application made today would, if approved, receive listed building consent in the middle of September which would only leave two weeks for the work to be carried out and invoiced before the 1st October deadline”.
The anti-forestalling measures that have been put in place mean that the work must be completed and invoiced before the relevant date. Any outstanding work after this date will be charged at the standard rate of VAT.
After the 1st October all work to listed buildings will be subject to the standard rate of VAT which is currently 20%
Many heritage organisations are lobbying Government against VAT changes to listed buildings. They have been successful in securing an amendment to the transitional amendments which now confirms that as long as the Listed Building Consent was applied for before Budget Day on 21 March 2012 the zero-rating will remain available until 30 September 2015.
Head of Department
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