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10-year ruling on VAT exemption

Submitted by NJobson on 7 December, 2010 - 08:37

I have just received an enquiry about some possible VAT exemption on any works to a listed building that is apparently being converted from a commercial premises into residential. The premises is apparently empty but new to me hence my involvement.

My client stated that an appropriate Empty Properties officer can give the authorisation and certificate to such enquiries especially where 10 years have elapsed. Is this true?

I am unable to speak to our listed buildings officer as she is away at the moment as I have been told this is may be more a planning enforcement / building control matter.

I have heard something about this but have never been asked this question before so can you advise me accordingly.

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Yes EPOs can certificate how long a home is empty

Submitted by David Gibbens on 7 December, 2010 - 08:48.

Hi Nick

The relevant document is the HMRC Notice 708 on VAT and Construction.  This can be found via our library here.  Paragraph 5.3.3 How do I know if a building has been unoccupied for 10 years? says

"If you hold a letter from an Empty Property Officer certifying that the property has not been lived in for 10 years, you do not need any other evidence."

The same wording is repeated at 6.3.3 and 8.3.2 (fror properties empty over 2 years).

Additionally, any works that require listed building consent are zero-rated regardless of how long the building has been empty - but that doesn't normally apply to repairs (see Section 9).  Possibly one of the most counter-intuitive pieces of tax legislation around that you get VAT relief for altering a listed building but not for repairing it. 

David Gibbens (EHN Policy and Support)