V16.997 VAT—anti-forestalling for approved alterations to listed buildings and the self storage sector
Information Sheet 9/12, August 2012
1.1 Who should read this information sheet?
Businesses which provide
— construction services in the course of an approved alteration to a protected building (including the supply by the business supplying these services, of building materials which are incorporated into the building) or
— supplies of self storage
and which receive prepayments for these supplies.
1.2 What is this Information Sheet about?
In his Budget on 21 March 2012 the Chancellor announced that approved alterations to listed buildings and supplies of self storage will be taxed at the standard rate of VAT from 1 October 2012. This Information Sheet explains how to operate and account for an associated VAT anti-forestalling charge relating to these changes.
1.3 When do the changes take effect?
The anti-forestalling charge was announced on Budget day and legislated for in the Finance Act 2012 but has effect from 21 March 2012 by means of a Written Ministerial Statement.
1.4 Why have these changes been introduced?
The anti-forestalling rules are designed to prevent suppliers avoiding the effect of the 1 October 2012 changes by bringing forward the time of supply. They ensure that all supplies of self storage or approved alterations to listed buildings provided on or after 1 October 2012 are subject to VAT at 20 per cent, whenever they are paid for, unless in the case of listed buildings they qualify for transitional relief (see paragraph 3.2 below). The Finance Act 2012 achieves this by