V.A.T Listed Buildings and Conservatories - 2012 Changes

Following the budget last week and with particular reference to VAT and Listed Buildings, we are being advised that:

The basic position is that all work carried out prior to 1 October will still benefit from zero rating, where applicable.

Work carried out thereafter will be liable to VAT at 20%.

There are, however, a couple of variations/conditions:
Any work, for which the contract has been placed, prior to 21st March 2012, will still be zero rated up until 21 March 2013.

There will be anti-avoidance measures put in place, such that if someone invoices work in September (no VAT), but carries out the work after 1 October, HMRC will be able to charge 20% on that work.
This would also apply if someone simply placed a deposit prior to October for work carried out afterwards.

Works unaffected that still qualify for the 5% VAT rate:

• Empty for 2 years prior to work starting. 
• Converting a property from two dwellings into one, or vice versa. 
• In fact any conversion resulting in a different number of dwellings. 
• Converting from commercial use to residential use. 
• Also unaffected will be ‘Self build’ claims.

So, conservatories, extensions, garden rooms, orangeries will all be subject to the full rate of V.A.T
unless you placed an order by last week!

More to follow...