Q:We are converting a Grade II listed manor house into luxury apartments. Are we still liable for VAT?

Jan. 1, 2002
Yes and no. HMCE (customs and excise) notice 708/1997 stipulates that work for &“approved alterations&” to listed buildings or scheduled monuments (residential uses only) may be zero rated for VAT, but not repair work. Where a renovation project or redevelopment comprises a mixture of repair and alteration, the proportion which may qualify for zero-rating will be a question of fact …

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