This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

VAT Construction

‘Approved alteration’ of a ‘protected building’ (rules prior to 1 October 2012): apportionment

Apportionment for works that do not entirely relate to ‘approved alterations’

Where works relate in part to an ‘approved alteration’ of a building and in part for other purposes, such as repair and maintenance or works outside the building, an apportionment can be made to determine the proportion that can be zero-rated.

Apportionment for works that are wholly ‘approved alterations’ but are in part to a ‘protected building’

Strictly speaking, there is no provision that allows apportionment. Note 5 (VCONST10800) only applies to the major interest grant of substantially reconstructed buildings. Equally, Note 3 (VCONST08150) does not import Note 10 from Group 5.

However, we accept that Note 10 should apply and the guidance in VCONST17000 can be followed.

All repair or maintenance work to a ‘protected building’ is standard-rated, even though the work may have been included in the listed building or scheduled monument consent given. When work for which consent has been given includes both alterations and repair and maintenance, the work must be apportioned.

Other work such as preliminaries, building work in connection with making good will need to be apportioned, if they relate to both ‘approved alterations’ and other work. This may be done on a pro rata basis of the standard and zero-rated work identified for the whole project. Where a task is identified with a particular activity it carries the same liability as that piece of work.