A business can zero rate the construction of certain buildings, subject to relevant conditions. This document covers this in detail, together with the demolition and party walls; HMRC’s information sheet; evidence; constructions incorporating existing buildings; treating relevant residential purpose buildings as dwellings; sub-contractors; extending existing buildings; relevant charitable purpose buildings; services that can and cannot be zero rated; and mixed site developments..
Points discussed within this guidance note:
> Conditions to zero rate the construction
There is a new build vat exemption on certain buildings. There is zero rated vat on new builds which are designed as a dwelling, will be used solely for a relevant residential purpose or will be used solely for a relevant charitable purpose, so long as certain conditions are met which are set out in this note.
>> Basic conditions
>> What buildings can be constructed at the zero rate?
>> What is a zero-rated construction?
>> Demolition and party walls
> HMRC VAT Information Sheet 07/17
Where buildings make use of or keep parts of a building that stood on, or adjacent. Where buildings make use of or keep parts of a building that stood on, or adjacent to, the site where the construction works are undertaken, HMRC has issued additional guidance.
>> Evidence needed that facades are being retained as a condition or requirement of specific planning consent (SPC)
>> Construction of buildings that incorporate existing buildings
> Treating relevant residential purpose buildings (RRP) as dwellings
>> Creating additional facilities
>> Change of use
>> Care homes
>> Pennine Care NHS Trust
>> Care packages including accommodation
>> Construction of new student accommodation
> Extending and enlarging an existing building
> Relevant charitable purposes
>> What is an annex?
>> HMRC v Longridge on the Thames
> Services in the course of construction
>> Civil engineering works
>> When is a building completed?
>> Services provided before or after construction
> Services that cannot be zero-rated
>> Architects, surveyors, consultants and supervisor
>> Hiring goods
>> Goods used for private / non-business purposes
> Mixed site developments
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