Commentary

V7.370A Construction services—FA 2012 changes affecting protected buildings

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.370A Construction services—FA 2012 changes affecting protected buildings

Part V7 Tax planning | Commentary

V7.370A Construction services—FA 2012 changes affecting protected buildings

Subject to transitional provisions (noted below) the FA 2012 changes affect:

  1.  

    •     Those who reconstruct protected buildings to sell, or to grant a long leasehold interest in, eg property developers.

  2.  

    •     Those who incur costs on approved alterations to protected buildings, eg people and charities who live in or own listed buildings.

  3.  

    •     Construction businesses that reconstruct or alter protected buildings.

VATA 1994, Sch 8, Group 6 provides a detailed definition of the term 'protected building'. In general terms a protected building is a listed building or scheduled monument that is designed to remain as or become a dwelling or a number of dwellings or is intended to be used exclusively for a relevant residential or charitable purpose.

Finance Act 2012 does not change the definition of a protected building but it restricts the ability for property developers to zero-rate the first grant of a substantially reconstructed protected building and it results in approved

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