Deadline for VAT Relief on Listed Buildings

Zero rating

Up until the deadline date, the rules allow for listed buildings - used as dwellings or for certain other purposes - to enjoy zero rating on the cost of approved alterations.

The new twenty per cent standard rate VAT payable on all work to these buildings is likely to cost listed building owners thousands of pounds just to ensure the survival of their property.

Furthermore, zero rating on the sale of a substantially reconstructed listed building will no longer apply in most cases.

But there are transitional rules, running until the end of September 2015. Amongst other situations, these cover cases where the listed building consent was applied for before 21 March 2012 (Budget day), so it will be important to check these, and to make sure that contractors do not charge VAT unnecessarily.

VAT Reliefs

However, some significant VAT reliefs still remain, including reduced rates of VAT for certain residential alteration works and zero rating on sales of newly built or converted dwellings.

If you would like to discuss any aspects further please contact our team to understand whether you, or your contacts or clients, could lose out, or hopefully benefit from tax savings through our specialist advice.