Commentary

V16.949 Changes to the zero-rate for buildings used for a relevant charitable use

Part V16 Forms and other HMRC material

V16.949 Changes to the zero-rate for buildings used for a relevant charitable use

V16.949 Changes to the zero-rate for buildings used for a relevant charitable use

Information Sheet 8/09, July 2009

1 Introduction

As announced in Revenue & Customs Brief 39/09 (RCB/39/09, Division V16.3) the “charitable building” concession (ESC 3.29), will be withdrawn on 1 July 2010.

Charities wishing to take advantage of the zero-rate available for the construction of, and the acquisition of, a building intended for use solely for a relevant charitable purpose (“RCP”) must satisfy the “solely” requirement of the statutory legislation. They will now be able to do so, without need of Extra Statutory Concession (ESC) 3.29, provided that the building concerned is intended to be used 95 per cent or more for a “RCP” using any method to measure use providing it is fair and reasonable.

There will be a transitional period of 12 months from 1 July 2009 in which charities have a choice of using either ESC 3.29 (subject to the conditions in para 4 below) or the new

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