In 2012 Government removed the 0% VAT concession on approved alterations to listed buildings, adding additional financial strain to owners for any conservation or restoration bills. The cost of conserving their properties is already often more expensive than works to a standard home because traditional methods and materials are required so this was an added blow.
Although the VAT laws have been changed, there are some instances in which owners can apply for reduced VAT but it can be difficult to understand where and when these rules apply and in most cases, owners are completely unaware of it.
One particular owner found good fortune by talking to The Listed Property Owners’ Club VAT Advisor Dave Brown at the annual February Listed Property Show; whereby their conversation at the 2017 event has lead him to receive a refund of over £17,000 from HMRC.
The owner had purchased a dilapidated 1413 hall house in Maidstone Kent, which was a failed pub at the time, and he then converted it to a single domestic dwelling. The owner had managed to work his way through two VAT hurdles, one of which was evading VAT on the purchase price as the purpose was being converted from commercial to residential use and then, with the help of an accountant’s report, he was able to reduce the VAT charges down to 5% on the majority of the reconstruction work rather than the standard rate.
Then the owner spoke, by chance, to Dave Brown at The Listed Property Show who introduced a third step the owner was not aware of. With Dave’s help and guidance this three year restoration project, except from VAT on trivial items and specific disallowed items (such as architectural fees), was completed without incurring VAT, resulting in a refund from HMRC totalling over £17,000.
The owners says, “Dave’s advice and encouragement were crucial in obtaining a successful result. I did not know this third VAT step existed until I met him.”
The Listed Property Owners’ Club experts play a key role within the Club, educating and supporting members with the trials and tribulations they face during ownership.
This case study is a great outcome for a listed building owner and all as a result of attending The Listed Property Show. The next Listed Property Show, organised by LPOC, takes place on 24-25 February 2018 at Olympia London. It embodies the objectives of Club and opens its doors to owners and prospective owners of listed buildings. All visitors, not just members, are open to a wealth of knowledge via demonstrations, talk lectures, one-to-one conversations with conservation advisors and access to over 150 of the country’s leading specialists and suppliers. The Club is able to offer help and advice on a range of topics from VAT, planning issues and legal issues to unauthorised works, maintenance and insurance.
LPOC VAT Advisor Dave Brown will be available to speak to listed property owners at the show via free one-to-one sessions, and he forms part of the Ask the Experts panel which takes place on both the Saturday and Sunday at the event. Dave is also always on hand to all LPOC members with any day to day queries they have via the Club on 01795 844939.
For further information, or an interview with the owner, contact Chloe Fosbraey on 01795 844939 or email firstname.lastname@example.org.
About The Listed Property Owners’ Club
Established in 1993, The Listed Property Owners’ Club was created specifically to provide the owners of Britain’s protected buildings with information and advice on the maintenance, responsibilities and obligations of ownership. Additionally it provides a voice in Parliament to represent the views of its members. Members benefit from a bi-monthly magazine, a dedicated telephone helpline where you can speak to experts on conservation, VAT, law, planning, and insurance, plus the Suppliers Directory of professionals, builders and tradesmen, which is the first port of call for many listed building owners across the country.
More information can be found at www.lpoc.co.uk