VAT for builders in a nutshell.

constructionDid you know that ZERO vat rate apply to approved alteration works on listed buildings?

In order to apply the zero VAT rate, you need to gain a listed building consent for the alterations. Generally speaking, the alteration must be approved. Applications for a listed building consent (LBC) should be submitted to the Council before undertaking building works. Alterations that are carried out illegally without LBC are not valid for zero rating.
Do not confuse alteration works with maintenance works and repairs – those are standard rated (20%).
A building is considered to be altered when its fabric, such as its walls, roof, internal surfaces, floors, stairs, windows, doors, plumbing and wiring is changed in meaningful way. For example, extensions, replacement of a roof structure with a different form e.g. change from flat to pitched roof, installation of a window in a newly created opening or extension of the wiring system.
Works closely connected to an alteration, including preparation work and making good, will also carry the zero rate.

BUT if the need for an alteration comes about during the course of carrying out a repair or maintenance then such alterations would not be applicable for the zero rating.

More information upon your request or alternatively visit www.hmrc.gov.uk

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