HM Revenue and Customs Brief 04/14
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Issued 31 January 2014
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
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
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).
VAT Information Sheet 02/14
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
If you have hearing difficulties, please ring the Textphone
service on telephone: 0300 200 3719.
About the Author
© Crown Copyright 2014.
A licence is needed to reproduce this article and has been republished
for educational / informational purposes only. Article reproduced by
permission of HM Revenue & Customs.
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Article Published/Sorted/Amended on Scopulus 2014-02-03 12:33:03 in Tax Articles