Commentary

RCB/32/10 VAT—changes to the application of the zero rate to new buildings used for a relevant charitable or residential purpose

Part V16 Forms and other HMRC material

RCB/32/10 VAT—changes to the application of the zero rate to new buildings used for a relevant charitable or residential purpose

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.

Background

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

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