Usually, domestic construction services are zero-rated for VAT, unless the work is a conversion of an existing building, or an alteration or extension to an existing building - or is an annexe?
If the conversion is from commercial to domestic use, then the work can be zero-rated - plus, under certain circumstances, there’s a reduced rate of VAT for conversion of existing domestic premises.
So should VAT be charged or not?
And what if the building is used as a residential care home or hospice?
Special rules apply and construction services may be zero-rated - and, similarly, there are special rules if the building is to be used for charitable purposes. We have advised the budget-holders of many construction projects how the project might be structured to take advantage of the
zero rate. After all, no-one wants to pay 17.5% more than they need to! For more information, contact Alan or Nick. |
