Following the unsuccessful campaign to reverse the Budget decision to levy full VAT on approved alterations to listed buildings, HMRC has published guidance covering the changes, which take effect from 1 October 2012.
VAT Information Sheet 10/12 – VAT: approved alterations to listed buildings:
This provides guidance on how to establish the correct VAT liability of approved alteration work of protected buildings. The changes affect supplies of approved alterations to protected buildings and first grants of a major interest in a substantially reconstructed protected building that are made on or after 1 October 2012. To mitigate the impact, a transitional relief will apply until 30 September 2015, where the certain conditions are met. In order to obtain zero-rating under the transitional rules, persons carrying out approved alteration works must be able to show that the relevant consent was applied for before 21 March 2012 or that a written contract for the work was in place before 21 March 2012, and that the works performed are included within the scope of the consent or contract.
VAT Information Sheet 09/12 – VAT: Anti-Forestalling for Approved Alterations to Listed Buildings and the Self Storage Sector:
This explains how to operate and account for an associated VAT anti-forestalling charge relating to these changes. The anti-forestalling rules are designed to prevent suppliers avoiding the effect of the 1 October 2012 changes by bringing forward the time of supply. They ensure that all supplies of self storage or approved alterations to listed buildings provided on or after 1 October 2012 are subject to VAT at 20 per cent, whenever they are paid for, unless in the case of listed buildings that qualify for transitional relief. The Finance Act 2012 achieves this by introducing an anti-forestalling charge to VAT at a rate equal to the standard rate of VAT. This charge is due on 1 October 2012.
For 10/12 see: LINK
For 09/12 see: LINK
