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HM Revenue and Customs Brief 47/07


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Issued 26 June 2007

VAT: introduction of a reduced rate for the supply and installation of mobility aids for the elderly

With effect from 1 July 2007, the supply and installation of certain mobility aids will be eligible for the reduced rate of VAT (5%) when installed in domestic accommodation occupied by a person aged 60 or over at the time of the supply.

Scope of the reduced rate

The reduced rate will apply to the supply and installation of the following items only:

  • Grab rails.
  • Ramps.
  • Stair lifts.
  • Bath lifts.
  • Built-in shower seats or showers containing built-in shower seats; and
  • Walk-in baths with sealable doors.

However, the reduced rate will not apply to any repairs or replacements of those goods once installed.

It will only apply when the installation is carried out in an elderly personís private domestic residence, either his or her own home or a home shared with friends or relations. It will not apply to residential care homes or similar establishments.

The reduced rate will not apply to general adaptations carried out to private domestic residences, such as widening passageways or constructing annexes.

The reduced rate will not apply to the supply of goods alone, for example, if the goods are purchased direct from a stockist. However, the reduced rate can apply to a supply of installation services alone.

Customer eligibility

The reduced-rating of the supply and installation of the above goods relies upon the beneficiary being aged 60 or over when the supply is made.
Customers wishing to take advantage of this reduced rate will need to demonstrate to their suppliers that the beneficiaries are eligible for it. HMRC recommend that customers provide to their suppliers a written declaration, stating the name of the beneficiary, the address of the property concerned and that the beneficiary is aged 60 or over. It may not always be possible for an elderly person to complete a declaration personally. In such cases a declaration by a relative, partner or other responsible person is acceptable.
The declaration should be separate from, or clearly distinguishable from, any order form or invoice against which the goods or services are supplied. A customer signing an order to confirm that work has been done should not automatically be signing a declaration of eligibility for the reduced rate.

Further advice

A person of any age who is disabled may be entitled to the zero rate on a wider range of goods and services (including those mentioned above). More information can be obtained from Notice 701/7: VAT reliefs for disabled people or by contacting our Charities helpline on 0845 302 0203.

Anyone who remains uncertain as to the liability of the supply and installation of mobility aids for the elderly should contact the National Advice Service.

Notice 708 Buildings and construction, which provides guidance on the liability to VAT of construction services, will be amended in due course.

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© Crown Copyright 2007.

A licence is need to reproduce this article and has been republished for educational / informational purposes only. Article reproduced by permission of HM Revenue & Customs under the terms of a Click-Use Licence. Tax briefs are updated regularly and may be out of date at time of reading.

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Article Published/Sorted/Amended on Scopulus 2007-06-26 21:00:08 in Tax Articles

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