HMRC has issued a response document to the consultation process on the VAT changes introduced in the Budget. This is the first in a number of updates which we will be issuing on the issues addressed within this 57 page document and how the VAT changes are now to be introduced.
As far as the changes to the zero-rate on approved alterations to listed buildings is concerned the document contains some good news on the transitional period.
The document summarises the points made by many respondents within the charity, care and building sectors as well as individuals owning listed properties. It then outlines revised qualifying conditions and an extended transitional period.
Zero-rating will now be allowed for eligible approved alterations on projects where listed building consent had been applied for before 21st March 2012 (not just where a signed written contract was in place before Budget Day) and these projects will continue to benefit from zero-rating on works completed to 30th September 2015.
VAT Director, Steve McIntyre sees this as good news for all who are undertaking listed building projects as it allows a more acceptable period of time in which projects will continue to benefit from zero-rating, even though the measure to remove the zero-rating on approved alterations will remain.
Karen Mulcahy, Senior Manager, further comments that nevertheless, there will be a number of interested parties who will disappointed that the proposed measures have not been subject to the ‘u-turn’ that other measures have benefitted from.
In addition, we are also still waiting for further detail on the revisions to the Listed Places of Worship scheme.
If you want further detail on this item or any other VAT issue please call The VAT Consultancy on 01962 735350.