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
On 26 March the IHBC, led by Prof. John Edwards, hosted a free one-hour CPD webinar ‘Introduction to Building Survey for Retrofit’ for sector professionals.
Greg Clark, writing an opinion piece for RICS, explores how good governance in cities pays dividends.
The Architectural Heritage Fund has issued a report on the first year of its ‘Transforming Places Through Heritage’ grants programme, funded by DCMS.
Europe’s star cities are scattered all over Europe but their perfect geometrical beauty can only be fully admired when seen from above.
The freely available Insight 1 series targets a wide range of cohorts who wish to gain an appreciation of practical heritage conservation.
The restoration and renewal of the Palace of Westminster is of ‘paramount importance’ according to the recent strategic review.
The IHBC's monthly CPD Circular showcases upcoming Events, Awards, Placements, Bursaries & Scholarships, Calls for Papers and more from across the UK and beyond.
The move of a 139 year old Victorian House through the streets of San Francisco drew an excited crowd of onlookers who came out to watch a truck slowly and carefully pull the historic house through the streets.
Historic England has published a new edition of its advice note on how local heritage listing and local heritage lists can be formally identified as part of the wider range of designation so that they can be taken into account in planning applications.
The stunt aimed at highlighting ongoing delays to its repair, as the 133-year-old west London bridge has been closed to traffic since April 2019 when cracks appeared in its pedestals.
Uninhabited Aerial Vehicles (UAVs) have been used to undertake a survey of the Lloyd’s building’s external façade in the heart of the City of London.