VAT - Protected Buildings
To mitigate the impact of this change, a transitional relief will apply until 30 September 2015. Zero-rating will continue to apply where a 'relevant consent' was applied for before 21 March 2012 or a contract was entered into before 21 March 2012. This included contracts already underway on 21 March 2012. For more information see HMRC, Buildings and construction.
For these rules to apply the building in question must be a 'protected building', a 'listed building' or a 'scheduled monument'. And for such works on these types of building, the works themselves are subjected to a variety of tests as to whether they are considered 'approved alterations'.
There are clear definitions which apply to each of these categories of building.
Consultants’ fees associated with such works are not, however, zero-rated although some consultants services which are supplied via, for example, a design and build contract may be zero-rated depending upon the nature of such services and the contractual arrangement under which they are supplied.
|1||Work is carried out to a ‘protected’ building.|
|2||The work is an ‘alteration’ of a protected building and is not work of ‘repair or maintenance’.|
|3||The alteration is ‘approved’.|
|4||Your services are made ‘in the course of the approved alteration’ of that building.|
|5||Where necessary, you hold a valid certificate.|
|6||Your services are not specifically excluded from zero-rating.|
|A protected building is a building that is||and is|
Intended for use solely for a relevant charitable purpose.
|Either a listed building or a scheduled monument|
 What is a listed building?
A listed building is one included in a statutory list of buildings of special architectural or historic interest compiled by the Secretary of State for National Heritage in England and by the Secretaries of State for Scotland, Wales and Northern Ireland.
In England and Wales there are three categories of listed building, Grade I, Grade II*, and Grade II. In Scotland the equivalent categories are Grade A, Grade B and Grade C(s). In Northern Ireland the equivalent categories are Grade A, Grade B+ and Grade B.
Buildings within the curtilage of a listed building such as outhouses or garages which, although not fixed to the building, form part of the land and have done so since before 1 July 1948 (for example, an outhouse) are treated for planning purposes as part of the listed building.
Unlisted buildings in conservation areas, or buildings included in a local authority's non-statutory list of buildings of local interest, which used to be known as Grade III buildings, are not ‘protected’ buildings for VAT purposes.
 What is a scheduled monument
A scheduled monument is one included in a statutory schedule of monuments of national importance as defined in the Ancient Monuments and Archaeological Areas Act 1979 or the Historic Monuments and Archaeological Object (Northern Ireland) Order 1995.
The underlying purpose of these provisions is to facilitate the repair and protection of nationally important buildings as well as to make the provision of certain types of dwelling easier and less financially demanding than would otherwise be the case.
However, at the time of writing, these zero-rating rules are being reviewed by HM Government and it may be the case that this favourable treatment is removed for approved alterations to approved buildings.
 Related articles on Designing Buildings Wiki
- Business rates.
- Conservation areas.
- Listed buildings.
- Stamp duty.
- Tax Relief for Heritage: Lessons from abroad.
- VAT - Option to tax.
- VAT Policy for historic buildings.
- VAT reverse charge.
 External references
Ireland’s Minister for Rural and Community Development, Heather Humphreys, announced a new funding stream to support Local Authorities (LAs) to purchase vacant buildings that could be converted and developed for community use.
Eleven pubs across England have been recognised for their historic or unusual interiors, as they have been listed, upgraded or relisted.
The Heritage Sector Resilience Plan, developed by the Historic Environment Forum (HEF) with the support of Historic England, has been launched.
An ‘All-Island’ commitment to Ireland’s vernacular heritage has been established with the signing of the North South Agreement on Vernacular Heritage, supporting traditional buildings etc.
Canons House, a landmark building on Bristol Harbourside, has been awarded Grade II (GII) listed status having been built as a regional headquarters for Lloyds Bank between 1988 and 1991 (Arup)
The Building Research Establishment (BRE) has announced a new project with the Department for Business, Energy and Industrial Strategy (BEIS) to improve and modernise the home energy rating scheme used to measure the energy and environmental performance of UK homes.
Sector lead the Construction Skills Certification Scheme (CSCS) has recognised the IHBC’s professional accreditation and support (CPD etc.) in awarding its PQP (Professionally Qualified Person) cards.
Work to repair a fire-hit medieval hotel in Gloucester is underway as crews have started work to strip back some of the modern trappings and reveal the historic framework.
The Secretariat to the European Heritage Heads Forum has has coordinated its declaration of solidarity and support for Ukraine’s cultural heritage institutions.
2022 will see the IHBC mark a quarter of a century since our incorporation as a professional body supporting and accrediting built and historic environment conservation specialists. We’re kick-starting it by inviting your ideas on how to mark this special year!