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Listed building - replacement part |
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An old hotel had been converted into flats. The building was listed, with
the freehold being owned by a resident’s company (and unable to
recover VAT on expenditure). A large balcony had to be removed as it
was in disrepair, and listed building consent was obtained for its
replacement by a balcony that looked similar (but built with modern
materials and additional structural work – including steel props).
The
question then arose as to whether or not those works were VATable,
given that ‘approved alterations’ to a listed building are exempt
(provided they are not works of repair or maintenance). It was held that
the replacement was works of repair and maintenance; even though it
was an alteration that changed the appearance of the building, it was
not a fundamental alteration and the improvements were brought about
as part of the repair and maintenance work needed to remedy the faults
that had arisen. Accordingly, VAT was chargeable on the works.
Needless to say, when contemplating works to a listed building do give
serious consideration as to whether they are VATable or not. Metropole
(Folkestone) v CRC [2006] UKVAT V19917.
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March 2007 |
