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HMRC VAT to Listed Buildings Update and Transitional Period
HMRC have released the outcomes of their consultation on the proposed amendments to VAT on Listed Buildings as well as setting out the transitional requirements.
The document published by HMRC sets out the key issues raised by those that responded to the consultation and then sets out the qualifying conditions and the procedures during the transitional period.
The original proposals were that, for any Approved Alterations carried out where there was a contract in place prior to Budget Day, the Zero-rating would continue to apply until the 20th March 2013. However, the recent HMRC announcement means that the Zero-rating can still be applied to Approved Alterations on projects where Listed Building consent had been applied for before the 21st March 2012 (not just where a written contract was in place prior to Budget Day) and these projects will continue to benefit from a Zero-rating on works completed prior to the 30th September 2015.
Whilst the proposals doesn’t see the U-turn that was seen on the ‘Pasty Tax’ there are some projects that will see some benefit from the transitional period.
Further details are still awaited on the revisions to the Listed Places of Worship scheme.
