This Brief announces the issue of VAT information Sheet 02/14 which updates and supersedes the relevant sections of Public Notice 708 and VAT Guidance VCONST.
The information sheet provides guidance on the application of the zero-rate for VAT on buildings that are:
- designed as a dwelling or dwellings
- intended to be used for a relevant residential purpose (RRP)
Who should read this?
All parties involved in the construction and supply of buildings that are intended to be used for a RRP but take the form of dwellings.
The zero-rate for dwellings is based on the design of the building and for RRPs based upon its use. HMRC accept that there may be instances where a building could qualify for zero-rating under both of these provisions at the same time. In such cases, a taxpayer is free to rely on either provision to achieve zero-rating for their building.
Following an informal consultation with representatives of professional bodies and the property sector, HMRC are publishing a VAT Information Sheet (02/14) in order to provide guidance on the application of the zero-rate for VAT on buildings that are designed as a dwelling or dwellings (meeting the conditions of Note 2 to Group 5 of Schedule 8 of the VAT Act 1994) and are also intended for use as a building used for a relevant residential purpose (RRP) (meeting the conditions of Note 4 to Group 5 of Schedule 8 of the VAT Act 1994).
Who can I contact for further information?
For further information please contact the VAT Helpline on telephone: 0300 200 3700.
The Helpline is available from 8.00 am to 6.00 pm, Monday to Friday.
If you have hearing difficulties, please ring the Textphone service on telephone: 0300 200 3719.
Issued 31 January 2014