BB/11/B/05 Zero rating for protected buildings—definition of garage
Business Brief, Issue 11. 18 May 2005
This Business Brief article sets out HM Revenue & Customs' (HMRC) revised policy on what constitutes a “garage” for the purpose of the zero ratings relating to listed buildings which are dwellings.
It follows a decision of the VAT & Duties Tribunal in the case of Grange Builders (Quainton) Ltd (LON/02/982).
The law provides zero rating for approved alterations to a listed building designed to remain as or become a dwelling or number of dwellings and also for the first grant, by the person reconstructing such a building, of a major interest in the building or part of the building, or its site.
For the purpose of the zero rating, such a building can include a garage (occupied together with the dwelling), either constructed at the same time as the building or, where the building has been substantially reconstructed, at the same time as that reconstruction.
HMRC have always considered that in order for the