VAT on Listed Buildings

[Porty]

Sticky for a few days?

In deference to our leader and because so many of us live in Listed Properties, I believe this subject merits a topic of its own. I am not an authority.

My layman's understanding of the situation was; any works to extend a listed domicile or to utilise previously uninhabited parts of a listed domicile would not attract VAT. It seems that the scope is much wider. There is one golden rule; if you are looking to avoid VAT then you must under NO circumstances pay it. As an unregistered person you will not be able to claim it back. You must pass the burden onto your Contractor. He will be given a certificate, usually by the Architect, that allows him to adjust his own VAT return accordingly. In other words they,the contractors, pay VAT on the goods that they purchase, they do not charge you VAT, instead they claim it back from C&E. Getting this over to a first time VAT free contractor can be tiresome.

There is an organisations called the Listed Propert Owners Club you can find them at: They are the oracle but I think they charge for the Info sheets.

If you look at the last paragraph of this article it is what brought the fact to my attention. I would imagine a loft conversion counts as an extension up the way.

Owners of listed buildings are losing out to the tune of £250 million because they are not aware that much of the building work carried out on their home should not b

e charged VAT....
So says the Listed Property Owners Club, who have produced a new information sheet which explains the finer points of the law to those unsure of what they should be paying.
What should and should not carry VAT is rather involved, to say the least. Whilst tax is payable on repairs and maintenance, for example, many approved alterations, such as changing an internal wall, installing central heating for the first time, building an extension, or adding a conservatory should be zero rated. Even the installation of an Aga is tax free provided it is part of an approved alteration to create a kitchen where none existed previously.
So why do so many owners of listed properties lose out? Apparently the onus of deciding whether to charge VAT or not rests with the contractor, who decides at the outset whether it is payable or not. Fearful of getting it wrong and been handed a bill by the taxman, most play safe and charge the tax.
Given this state of affairs, it is well `worth knowing what does and does not carry VAT. According to Peter Anslow, of the Listed Property Owners Club, one homeowner saved £24,000 after discovering that 'underpinning' could be regarded as an extension (downwards) and was therefore exempt form tax.
For more information contact the Listed Property Owners Club: 01795 844939
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[Porty]

I should also add that the position is flluid and there is a strong lobby going on to try and make ALL works to listed properties VAT free. I believe the Govt are sympathetic.

[wangi]

I don't think they are! Recently then were bemoaning those "making money" renovating properties and making profit... the shame of it all! They weren't happy with simply VAT there - they're thinking about some sort of Changing Room's Tax!

(! overload)

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[Epykat]

[quote="Porty]There is no VAT to encourage improvements and yet those who improve their own properies have to pay VAT. Its an unfair anomally.[/quote]


It is very unfair and not a little ridiculous really! Our house is C listed and was riddled with dry rot and woodworm. We had to pay VAT on the repairs which were essential just to keep the roof up! What's the point in letting us off with VAT to extend/improve the building and not letting us off for keeping the thing standing in the first place? (and by the way, it was so complicated trying not to pay the VAT on the loft that we ended up paying it). In my humble opinion it should be the people who don't maintain, repair and generally upkeep their listed buildings who should be punished - not the idiots (like us!) who are trying to preserve them!

PS We won't ever be buying another one!

[Porty]

I wholeheartedly agree there is nowhere near enough help for idiots like you.

Seriously, your story is a perfect illustratiion of the iniquity of the current VAT legislation. I'm interested to know why it was so difficult to claim it back? Did Mr E do most of it himself?

[Epykat]