Commentary

708 Buildings and construction

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

708 Buildings and construction

Part V8 HMRC Notices | Commentary

708
Buildings and construction

June 2020

This notice cancels and replaces Notice 708 (August 2014) and a number of amendments.

If the use of a certificated building changes or the building is disposed of, as a direct result of coronavirus (COVID-19), and a self-supply charge is due, you should contact HMRC through your customer compliance manager or the charities compliance team by email: wmbchfesector@hmrc.gov.uk

For more information about change of use charges, see paragraph 15.6 and section 19.

1 Overview

1.1 This notice

This notice explains

  1.  

    •     when building work can be zero-rated or reduced-rated at 5%;

  2.  

    •     when building materials can be zero-rated or reduced-rated at 5%;

  3.  

    •     when the sale, or long lease, in a building is zero-rated;

  4.  

    •     when developers are “blocked” from deducting input tax on goods that are not building materials;

  5.  

    •     when a builder or developer needs to have a certificate from their customer, confirming that the building concerned is intended to be used for a purpose that attracts the zero or reduced rate;

  6.  

    •     when a customer can issue that certificate to a builder or developer;

  7.  

    •     what happens when a certificated building is no longer used for the purpose that attracted the zero rate, the use for that purpose decreases or the building is disposed of;

  8.  

    •     the special time of supply rules for builders;

  9.  

    •     when a business, on using its own labour to carry out building work on a building or civil engineering structure that it occupies or uses, must account for a self-supply charge.

Main narrative treatment—V3.244,

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