Housing associations in general face a restriction in the recovery of input tax because their core activity results in exempt supplies. Some associations take the view that it is not worthwhile, given the amounts potentially recoverable, to even consider a partial exemption method. However, depending upon the nature of supplies ancillary to renting dwellings, savings may be worthwhile. This section looks at the various recoveries which can be achieved, the reliefs available from VAT and considers possible partial exemption methods.
New build
Supplies made by a building contractor in the course of construction of a new dwelling or building to be used solely for a relevant residential purpose are zero-rated for VAT purposes.
Zero-rating only applies to services which are supplied as part of the construction or civil engineering work relevant to the beginning or ending of the construction work and are carried out prior to the first occupation. Such work includes:
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•ÌýÌýÌýÌý demolition work carried out as an integral part of the construction contract
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Web page updated on 17 Mar 2025 13:41