Building owners only have a few months left to carry out approved alterations to listed buildings at the zero VAT before it is withdrawn on October 1, states real estate services provider Savills.
The withdrawl of the zero-rate VAT was announced in the budget in March and, with work needing to be applied for and carried out before October, people only have a few weeks left to apply for work.
“With the standard consultation period for listed building consent lasting eight weeks an application made today would, if approved, receive listed building consent in the middle of September. This would only leave two weeks for the work to be carried out and invoiced before the October 1 deadline,” explains Jonathan Dymock of Savills Brechin.
“There are some transitional arrangements in place, but essentially this is the last window of opportunity to have the work done at the zero-rate of VAT.
“To comply with the current rules, the building must be used for residential or charitable purposes, the work must be an alteration not a repair, and it must require and receive listed building consent.
“Any outstanding work after October 1 will be charged at the standard rate of VAT.”
After the October 1 all work to listed buildings will be subject to the standard rate of VAT which is currently 20%
Transitional amendments now confirm that as long as the Listed Building Consent was applied for before Budget Day on March 21, 2012 the zero-rating will remain available until September 30, 2015.