VAT News

VAT Information Sheet 07/17: construction services and zero-rated relief

04.12.2017

HMRC have just issued a VAT Information Sheet 07/17 which comments on the implications of the recent VAT cases:

  • Astral Construction Limited
  • Boxmoor Construction Limited
  • J3 Building Solutions Limited

These cases looked at the nature of the building under construction and any parts of an existing building that may have been utilized in creating the new building. As Zero rating applies to certain construction services and grants of interests in building where they are seen as newly constructed this will have importance ramifications both for builders, property developers and the DIY Housebuilders Scheme. Due to the values of such project VAT advice is usually sensible to take to be sure where your scheme will fit but this Information will give you an insight into how HMRC regard the VAT treatment of such projects.

It'll be a point we’ll cover in our VAT Training events on Land and Construction through 2018.

VAT Information Sheet 07/17: construction services and zero-rated relief
 
explains when the construction of a building may be zero-rated and what evidence is needed to confirm that it qualifies for zero-rated relief.