VIEWPOINT


VAT, ZERO RATING OF FACADISM


W


historic buildings, demolish the interior and developers maintain just the front façade of why isn’t the trend for facadism – where reuse, recycle’ – preferably in that order. So redefined to mean ‘reduce, the three ‘Rs’ have been increasingly at the fore, ith environmental concerns


Abolishing VAT on the refurbishment of properties that have been empty for more


rate of VAT of 5%, and lifting the restrictions


intended solely for a relevant residential or that are either designed as dwellings or are only available for the construction of buildings At the moment VAT relief at the zero rate is that currently apply.


charitable purpose.


create a modern space within - declining in popularity in favour of the greener alternative of refurbishment?


The general rule is that an existing building must be demolished completely to ground level in order for the construction of its replacement to be treated as the construction of a building. Otherwise the works would be


AND THE SCOURGE


Niall Murphy, partner with national law firm Clarke Willmott LLP than two years to replace the current (reduced)


seen as the construction of part of a building. The effect of this is to deny VAT relief to buildings that are not constructed ‘from scratch’. This means that where a building already exists on the site of a development project, that building must have first been demolished completely to ground level in order for a building, which is to be constructed to replace it, to qualify for zero-rating.


The law allows this condition to be relaxed where there is a legal requirement (for example under a statutory planning consent) to retain a facade of the previously existing


Connected thinking... Now we go from boiler to point of use.


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