Listed Buildings, VAT andour SoMe journey

Zaenia Rogers www.thevatconsultancy.com

IntroductionWho we are?•20 years •Ex Big 4/HMRC

What we do?•Dedicated to VAT and Customs Duty•Work with professionals and clients

VAT Property • Largest part of our work

oListed property development oConversions oCharitable propertiesoCommercial TOGCsoEtc

•Work with developers, sub-contractors, owners – o Achieve the correct VAT positiono Minimise VAT as a project cost

The Issue

Consideration of supporting the call for the reduced rate (currently 5%) to apply on all property repairs/at a minimum on listed properties

Why?•VAT legislation has specific rules on listed properties that only support VAT relief for ‘major alterations’ – incentivising changes to our heritage rather than supporting protection of it

•Green Issues – Carbon emissions from domestic property high, energy efficient 5% rate current rules are complex and specific

•Thousands of homeowners unable to move could repair their property at competitive prices – either for resale or life quality

•Construction Industry contacts tell of increased Black Market - •Reduces work for reputable firms •Increases risk to our heritage as corners are cut•Increases tax losses for government

The Legal Perspective •VAT has specific rules on listed properties that only support VAT relief for ‘major alterations’

•The EU’s VAT Directive of 2006, Article 98, specifically enables countries to apply reduced rates, should they wish, to the “provision, construction, renovation and alteration of housing, as part of a social policy” (Annex III par 10).

•Across the EU, several countries charge lower-rate VAT on all property repairs. Italy charges 10%, Poland 8%, Portugal 6% and Slovenia 8.5%. Even within the UK there is a precedent with the Isle of Man charging 5% instead of the standard rate.

VAT & Listed Property The VAT Consultancy would like to use this forum to consider and receive feedback on such issues as:

•Could a more favourable VAT context help safeguard the future of buildings that ought to be preserved or renovated?

•Are skilled craftsmen going out of business because they are competing with the black market?

•Is the quality of heritage repairs being sacrificed because some building repairers are having to cut corners risking some of the UK’s finest listed buildings?

VAT & Social Media •Dissipate issues/new information to interested parties quicker

•Lightened the technical side of VAT, presenting it in a much more friendly manner

•Potential access to a new generation of clients

•“Thought leadership” ability to begin debates & receive feedback and begin debates more freely than traditional forms of communication

www.thevatconsultancy.com

vat@thevatconsultancy.com

01962 735350

@vatconsultancy