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HMRC internal manual

VAT Construction

‘Relevant charitable purpose’ - interpretation of terms: when supplies can be zero-rated

Construction services and materials

In order for supplies of construction services and materials to qualify for zero rating under Items 2 and 4 of Group 5 as being supplied in the course of construction of a building intended for use solely for a relevant charitable purpose, the recipient charity of those supplies must certify that it is the charity who intends to use the building solely for that purpose.

First grant of a major interest

In order for the first grant of a major interest to qualify for zero rating under Item 1 of Group 5, the recipient of that grant must certify that the building is intended for use by a charity for a relevant charitable purpose. It isn’t necessary for the recipient to certify that it is to use the building for a qualifying purpose, just that the building is intended for use solely for a relevant charitable purpose.