Ade B
MB Enthusiast
One for the builders/developers out there - dropped into my inbox earlier:
Obviously proper accountant's advice required etc. however thought it may be useful info for someone.
Ade
A brief reminder, by default VAT is levied at the Standard Rate on all construction works apart from the following-
· New build residential units - presuming full demolition of prior structures, bar any mandatory facade retention.
· Alteration works, with Listed Building Consent, to Listed Buildings. (being in a Conservation Area is not sufficient)
· Conversion of non-residential buildings into residential use.
· Altering the number of dwellings in a building; such as increasing / decreasing the number of flats, houses into flats etc.
· Renovation of dwellings uninhabited for more than 2 years.
· Certain new builds and extensions to Charitable buildings.
· Commercial developments.
Professional fees always attract VAT at the Standard Rate and usually result in an irrecoverable VAT burden.
VAT relief is not automatic and needs to be proven to the Contractor along with a suitable apportionment showing precisely where VAT relief may be applied. As it is the sole responsibility – and liability – of the Contractor to account for VAT correctly; they must charge VAT in full if no apportionment is provided (or indeed if they are not comfortable undertaking an apportionment themselves).
Obviously proper accountant's advice required etc. however thought it may be useful info for someone.
Ade
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