VAT

[Liz Fry]

Please could someone help enlighten me on what can and cannot be reclaimed iro of listed buildings. I understand that work classed as "alteration" are zero rated..... but wanted to double check what classes as an alteration.............

here are the scenarios I am faced with for a Grade II listed cottage we are in the process of purchasing:

HIstory: was until recently one dwelling but has now been split into two dwellings. This has meant that the half we are buying has no kitchen, the existing electrics & plumbing severed.

The only form of heating is some dodgy radiator set up involving a coal burning stove & the remaining electrics can only be described as hazardous.

Can I reclaim VAT on the

- kitchen (I presume we can as one doesn`t exist)
- new heating system to include new combi boiler ran off a new oil tank. I was unsure whether we could reclaim the cost of putting in all new radiators and piping as the existing are well......hmmmmmm.....caput.
- installation of a sewage treatment plant.. the owner asserts that she has a soakaway....she wasn`t really sure as she has never emptied anything....
- a new bathroom as one doesn`t exist atm.
- total rewire - wasn`t sure about this one.

Your thoughts/knowledge would be appreciated

k rgds

Liz

 

[Moo]

Our experience was about a decade ago, so the rules may have changed since then.
But I'm pretty sure that putting in shower rooms, downstairs loo, kitchen, central heating (new boiler and radiators) and a total re-wire were all classed as alterations. The only thing that wasn't exempt was the range cooker, because that could be disconnected and removed.

I'm sure, however, that someone else on the forum will be able to give you definitive and up-to-date advice.

 

[Horace]

Broadly the rule is alteration and not repair (even if the repair results in the use of "improved" modern materials). The alteration must have listed building consent. As a rule of thumb, if it doesn't need consent then Customs could argue its not an alteration and you can't zero rate. Also the listed buildings consent must be in place prior to the work taking place. Even if you get retrospective consent for an alteration, you wouldn't get the VAT back. Go on the Revenue and Custom's site and search for listed building there is quite a good VAT notice on it.

The other point to note is that builders often do not like to do it because if it turns out they should not have zero rated it, the VAT man goes after the builder for the cash!

 

[DaveBrigg]

We looked into it for our central heating (previously storage heaters) and rewiring (previously diy cables in all sorts of places where cables have no right to be). The very nice people in the Conservation Dept said that we might have a claim for the heating, but that for it to count, listed building consent was required. For them to be able to give listed building consent, we would need to submit detailed plans of pipework, radiator positions, etc. They were happy to do this, but advised that the cost of the process was probably more than the amount of VAT that could be claimed. We also considered the delay involved, and bit the bullet. If you are not listed, it may be easier.
We could have also had VAT reduced if we had left the property empty for, I think, another 12 months, since the two years it had stood letting in the rain was not considered long enough.

 

[Nemesis]

If you aren't listed ... it can't apply!

Also - the reduction on VAT from bringing abandoned property into use isn't so straightforward either, although worth checking out - ten years I think.