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HM Revenue and Customs Brief 04/14

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HM Revenue and Customs -Tax Authorities

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Issued 31 January 2014

Purpose

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.

Background

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 Friday.

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

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