RCB/32/10 VAT—changes to the application of the zero rate to new buildings used for a relevant charitable or residential purpose
Revenue & Customs Brief, Issue 32. 3 August 2010
This brief was originally published June 2009 under Revenue & Customs Brief 39/09 (RCB/39/09, Division V16.3).
This Brief announces a change in HMRC's interpretation of the of the legal provisions that apply the zero rate to new buildings used for a relevant charitable purpose, and the withdrawal of Extra Statutory Concession 3.29 and two related concessions. Information Sheet 8/09 (V16.949, Division V16.3) provides further detail.
A building intended to be used solely for a relevant charitable purpose (non-business use) can be zero-rated if the charity provides their developer with an appropriate certificate before the first supply is made.
If, however, the building is put to a business use within ten years of the building's completion, VAT