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HMRC internal manual

VAT Construction

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HM Revenue & Customs
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Relevant charitable purpose concession (pre-1 July 2010 only): about this section

Buildings intended for use for a relevant charitable purpose must be used ‘solely’ for that purpose in order to qualify for relief from VAT under Groups 5 and 6 of Schedule 8 (VCONST18600).

Before that revised interpretation of the term ‘solely’, HMRC interpreted the term as meaning ‘wholly’ or ‘100 per cent’. However, in order to mitigate the overly harsh effect of that interpretation, we accepted that in certain circumstances some non-qualifying use could be ignored and the building treated as if it were used solely for a qualifying purpose. This section sets out these circumstances.

The following concession only applied to supplies coming within the scope of Groups 5 and 6 of Schedule 8, Group 1 of Schedule 9 and Schedule 10 in relation to buildings intended for use for a relevant charitable purpose and not to buildings intended for use for a relevant residential purpose.