Listed Building & VAT back

MetManMark

Hi All
We are in the process of buying a Grade II Listed Building. We understand that it is possible to claim VAT back on restoration work (we need to do a fair amount). Could anyone provide is with some practical advise regarding what you have to do in order to claim this back?
Cheers
Mark

ormus

its very complicated for listed buildings. some things are vat rated and some things are zero rated.
you need to read buildings and construction notice 708. on the gov/customs excise/vat website.

gas4you

You need to write to your local HMRC office and ask them exactly what you can and cannot claim back. They have to reply withing 14 days. Once they have put it in writing then this is the facts that you go by.

leveller2911

Like others have said claiming back VAT on listed buildings is complicated.I'm a Joiner and do a lot of work on listed properties.The general rule is if your "Maintaining" (replacing rotten windows /doors,beams etc) then vat is payable.

If for instance you have Listed Planning permission to cut a new opening in an existing wall and fitting a new window/door then this is VAT free .One strange one I came across recently is that if you have a Upvc/alluminium window in a Listed property (which is fairly common believe it or not) and you replace that existing window with a timber window that is more "Traditional" looking then that is VAT free ,so as you can see it is complicated..If You replace an existing staircase then VAT is payable, if you cut a new hole in the ceiling and put a new staircase in then its VAT fee..

One thing I would say is having dealt with the VAT office I can say from experience they rarely give a deffinative answer,its always down to the VAT registered builder to "Make the decision" based on the whether its classed as additional work or maintenance..

Lastly don't expect any help via the VAT system to maintain your Liste Property as VAT is payable for maintenance, which is obviously the wrong way round...


As someone who has worked on Listed Properties for over 25 years and love the Architecture and the History behind each house, would I buy one?

Definately NOT , unless I won the lottery , had plenty of time on my hands and had the patience of a Saint...

Just noticed you last Question regarding claiming back the VAT.If any of the work is VAT exempt then the builder/Joiner/plumber won't invoice you for the vat so you don't need to claim it back unless your supplying materials in which case you need a form from HMRC.If his quote says £800-00 +vat and he carries out the work then the invoice would be for £800-00

leveller2911

gas4you wrote: »

You need to write to your local HMRC office and ask them exactly what you can and cannot claim back. They have to reply withing 14 days. Once they have put it in writing then this is the facts that you go by.

If only it were that simple, sadly its very complicated...Nothing is Black and White with VAT in Listed Buildings

gas4you

Once HMRC have replied in writing to your questions, then that reply is legally binding.

It is no good just phoning them up and asking questions, that is classed as just advice.

MetManMark

Hi - thanks for all your replies. Specifically we think that the house will require:
Rewiring
New central heating system installed
Damp problem fixing
Sash window replacement
Treating for woodworm
New kitchen
New bathroom
Loft insulation
Lots of odds & sods & redecorrating

Apart from the last 2 we will get tradesmen in to do the work - so the VAT issue would be dealt with through them as suggested above. The last 2 we can do ourselves. Having put a load of loft insulation into our current house I had visions of going to B&Q and requesting 20 rolls of insulation and requesting that we don't pay VAT on the insulation More seriously, for those things that you look to do your self how do you reclaim the VAT on items purchase?
Cheers
Mark

leveller2911

gas4you wrote: »

Once HMRC have replied in writing to your questions, then that reply is legally binding.

It is no good just phoning them up and asking questions, that is classed as just advice.

You would think so yes, but in reality it doesn't work like that , with written replies from HMRC using wording like " Your builder will need to read the construction industry VAT book section 8 sub section 3 clause 5 and he will use this to base his decision on whether to charge VAT at the standard rate"......Like I said they will rarely give you a written decision with Listed Property work.

You are probably correct in saying it would be legally binding when they give you a written reply but they won't make the final decision for the builder ,its a get out clause for them if its found to be wrong advice.

27col

When I built my house, all I did was to keep all the invoices and send them to the VAT people. They decided what was allowable and sent me a cheque a few weeks later. However, this was 30 years ago, so it is quite possible that things have changed drastically since then.

muckybutt

Hmm im just joining in, I too have a grade II building and we are looking to put in a different central heating system, would that be vat free ?

leveller2911

muckybutt wrote: »

Hmm im just joining in, I too have a grade II building and we are looking to put in a different central heating system, would that be vat free ?

I assume that would be classed as maintenance and VAT payable as your replacing an existing system..Just reading my VAT book it says: new system is classed as an alteration (vat free) "when a boiler is replaced as a direct consequence of deciding to extend the plumbing system"

BUT: Classed as maintenance (vat payable) "when the decision to extend the plumbing system is made following the need to replace the boiler"...............so your guess is as good as mine.....lol

Extending plumbing system is classed as "alteration" and vat exempt replace a boiler and I think it would be VAT payable..

Basically anything you replace or repair is VAT payable anything you do from new that wasn't there before is classed as "alterations" and VAT exempt ..But this is a basic rule...