Construction ― conversion, reconstruction and alteration of existing buildings

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Construction ― conversion, reconstruction and alteration of existing buildings
  • What is an existing building?
  • What is meant by conversion, reconstruction and alteration?
  • Practical points ― conversion, reconstruction and alteration of existing buildings

This guidance note examines the exclusion from the zero-rating for construction services that applies to the following kinds of works performed on existing buildings:

  • conversion
  • reconstruction
  • alteration

VATA 1994, Sch 8, Group 5, Note 16(a)

This should be read alongside the Construction ― zero-rating of construction services guidance note which sets out the scope of zero-rating for construction services.

For details of reduced-rating for certain conversion and renovation works, see the following guidance notes:

  • Conversion ― reduced-rating conversions to different residential use
  • Renovations and alterations ― reduced-rating works on empty homes

In-depth commentary on the conversion, reconstruction and alteration of existing buildings can be found in De Voil Indirect Tax Service V4.232H.

What is an existing building?

For an outline of the meaning of ‘building’ in the context of the zero-rating for construction services, see the Construction ― zero-rating of construction services guidance note.

A building only ceases to exist when either:

  • it is demolished completely to ground level, or
  • the part remaining above ground

More on Buildings and construction: