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Grade 2 Listed building - VAT exemption on renovation project

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  • Grade 2 Listed building - VAT exemption on renovation project

    Hi, we are about to commence a big renovation project on our grade 2 listed house. this includes an element of alteration and improvement (VAT exempt) and an element of repair and maintenance (not exempt). We are struggling with how to go about this and wouldl ove to hear from anyone who has any experience of this. In particular, have people gone through the process themselves or have they involved a firm to do the work for them and take a cut of the VAT saving? Thanks so much in advance.

  • #2
    Re: Grade 2 Listed building - VAT exemption on renovation project

    I don't understand your problem. Whether you do the work or a contractor does it, the alteration and improvement costs would be VAT exempt, so reducing the cost to you. Why should anyone "take a cut of the VAT saving"?
    This is based on my experience as a conveyancing solicitor in England, but I do not accept liability for information I give in this forum

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    • #3
      Re: Grade 2 Listed building - VAT exemption on renovation project

      Thanks very much for responding. The company specialises in VAT mitigiation. It protects the contractor in case they get it wrong and the VAT office comes back to them with fines and penalties for incorrect payment of VAT. I understand contractors are anxious about giving the VAT exemption in case they are later penalised so this protects them. What does and doesn't qualify for the exemption is very unclear as the lines between alterations and improvement vs repair and maintenance can become blurred in a big project like ours, e.g. we need a full rewire (repair and maintenance) but we are building a new extension so we think the wiring in that part should be exempt. We would need to contractors to trust that we have got this right and be able to apportion the cost. The VAT mitigation company claims that they know how to scrape as much of the exemption as they possibly can as they know they way the VAT office operates, so would be more adventurous about what they present as qualifying for the exemption. In short, they do the admin, the protect the contractor, in theory they make more of a saving for you but they take a 20% cut of the saving they make for the client. I am probably going to deal with the vAT aspect myself rather than emply someone to do it for me as we can't really afford to lose 20% of the saving but I'm anxious about getting it right and wanted some advice from someone who had done it alone or who had used a firm. Thanks.

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