Construction and zero rating
HMRC has revised its policy on when they will allow zero-rating for the construc…
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An accountant contacted us via our helpline in order to discuss a client who was converting a commercial building into residential apartments and the contractor was intending to charge VAT at the standard rate. On completion of the works, our client was intending to rent out the apartments.
After reviewing the relevant documents, we were able to establish that the conversion works qualified for the reduced rate of VAT (5%). Investigating further, we also identified a structure that enabled our client to recover all the VAT incurred on the relevant expenditure, even though the apartments were due to be rented out.
If you are an accountant and have any clients intending to convert any building into residential dwellings (or carry out any remodelling works in existing residential buildings) - please contact us so we can advise you on possible structures designed to negate a VAT charge to your client, and confirm the VAT liability of the works.
Our expert team of consultants is on hand to provide advice on all aspects of VAT. Simply get in touch with us today for assistance and a free, no-obligation chat. Either call 0800 077 4604, or fill out an enquiry form and we will be in touch.
Our helpline is free, and you can speak to a member of The VAT People for an initial discussion about any concerns, queries or questions you may have,
Get the vital information you need quickly and easily by watching one of our guidance videos - topics include VAT assessments and penalties, VAT for charities, and maximising VAT recovery.