Listed Buildings no longer zero rated
08 May 2013
March’s Budget contained a number of controversial proposed VAT measures. Buried under all the hype about pasties and caravans was the announcement of the withdrawal of zero-rating for approved alterations to listed buildings with effect from 1 October 2012.
Repairs to listed buildings have always been subject to VAT, whereas alterations to the fabric of the building requiring listed building consent have long been zero-rated. HMRC contended that “removing the zero-rate removes the perverse incentive to change listed buildings rather than repair them”.
Unfortunately, for many of our customers this will have a huge impact on the cost of their proposed projects and will also be detrimental to an already unstable construction industry.
For more information please see the HMRC website.
