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.

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