Conversion ― zero-rating non-residential conversions (housing associations)

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Conversion ― zero-rating non-residential conversions (housing associations)
  • When can conversion services for housing associations be zero-rated?
  • What is a ‘relevant housing association’?
  • What is a non-residential to residential conversion?
  • When are services supplied ‘in the course of conversion’?
  • What kinds of services are excluded from the zero-rating for conversion services?
  • When is a zero-rating certificate required in order to zero-rate conversion services?
  • What happens if only part of a building qualifies for zero-rating?
  • Can zero-rating include the conversion into garages?
  • Practical points ― conversion services supplied to housing associations

This guidance note explains when conversion services supplied to housing associations can be zero rated For an overview of the liability of construction services more broadly see the Overview construction conversion and renovation guidance note In depth commentary on the legislation and case law on conversion services supplied to housing associations can be found in De Voil Indirect Tax Service V4 240 When can conversion services for housing associations be zero rated Conversion services are normally excluded from the zero rating for construction see the Construction zero rating of construction services guidance note However conversion services supplied to housing associations can be zero rated where the following conditions are met the supply is to a relevant housing association the conversion is a non residential to residential conversion there is a supply in the course of conversion the services are not specifically excluded from zero rating where appropriate the supplier obtains a zero rating certificate VATA 1994 Sch 8 Group 5 Item 3 Notes 12 20 These conditions are explained further in this guidance note What is a relevant housing association In order for the conversion services to be zero rated they must be supplied to a relevant housing association ie one of the following a private registered provider of social housing a registered social landlord within the meaning of the Housing Act 1996 Part I Welsh registered social landlords a registered social landlord within the meaning of the Housing Scotland Act 2010 asp 17 Scottish registered social landlords which is either a society registered under the Co operative and Community Benefit Societies and Credit Unions Act 1965 c 12 a company

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