The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the VAT treatment of approved alterations to a protected building.
Work undertaken in the course of an approved alteration to a protected building can no longer be zero-rated with effect 1 October 2012 and is now liable to VAT at the standard rate. However, the disposal of a protected building that has been substantially reconstructed remains zero-rated. The revised VAT treatment is outlined below.
HMRC has stated that they amended the legislation for the following reasons:
“The purpose of these changes was to remove the anomaly whereby the approved alteration of protected building was zero-rated but their repair and maintenance (and the alteration of other types of building) was standard-rated. The VAT treatment of approved alteration to protected buildings has been a source of major confusion, resulting in a high volume of taxpayer query and frequent error. These changes remove the need to try to distinguish between alteration and repair or maintenance, and remove the incentive to alter, rather than repair, listed buildings.”
The transitional arrangement continued to apply to one of the following until 1 October 2015:
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