Removal of VAT relief for approved alterations
As part of the Budget announcements, HMRC has opened a consultation on its proposal to remove VAT relief for approved alterations to listed buildings, from October 2012.
The consultation closes on 18 May.
What does this mean?
Up to now approved alterations to listed buildings have been exempt from VAT. This means that projects that have “altered listed buildings” have not had to pay VAT on their work at 20%. Approved alterations can be defined as any modification (alteration) to a listed building which requires listed building consent (approved). Repairs and maintenance are subject to 20% VAT and this remains unchanged.
According to HMRC
A building is altered when its fabric, such as its walls, roof, internal surfaces, floors, stairs, windows, doors, plumbing and wiring is changed in a meaningful way.
The type of work which normally requires Listed Building Consent can include (for example):
- Replacement of UPVC double glazing with copies of original wooden windows for aesthetics reasons
- Installing a window where one did not exist before
- Replacement of a flat roof with a pitched roof
- Extending wiring and plumbing systems
- Replacing a boiler with a larger capacity boiler whilst extending plumbing systems
- Or to be more specific installing a wheelchair lift or improving toilets and heating, are classed as alterations and are currently exempt from VAT.
The Government want to introduce VAT at 20% for these types of projects
Civic Voice is joining with the Heritage Alliance campaign to campaign against these changes. We ask all civic groups to contact their local MP via our website here sign the e-petition against this measure here