It was announced in the budget in March that the zero-rate of VAT will be withdrawn for “approved alterations” to listed buildings from the October 1.
Stuart Thornhill of Jonathan Cornes Associates said: “There are some transitional arrangements in place, but essentially this is now the last 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 the work must require and receive listed building consent.
“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 which would only leave two weeks for the work to be carried out and invoiced before the October 1 deadline”.
The anti-forestalling measures that have been put in place mean that the work must be completed and invoiced before the relevant date.
Any outstanding work after this date will be charged at the standard rate of VAT.
After October 1 all work to listed buildings will be subject to the standard rate of VAT which is currently 20 per cent.
Many heritage organisations are lobbying Government against VAT changes to listed buildings. They have been successful in securing an amendment to the transitional amendments which now confirms that as long as the Listed Building Consent was applied for before Budget Day on March 21 the zero-rating will remain available until September 30, 2015.
Property Aspects Magazine appreciate the contribution to this article from the team at Jonathan Cornes Associates, Chartered Building Surveyors. Contact them on 01782 209203