Last year I posted a Blog about where we do NOT have to charge VAT or can the rate be reduced. In the 2012 budget a major change in the VAT was introduced:
Approved alterations to listed buildings will be standard rated. The zero rate will now only apply to works which amount to demolition and reconstruction from a shell.
Repairs and maintenance on listed buildings has always been standard rated (presently 20% VAT) but alterations were zero rated. This could potentially discourage people to carry out improvement works to their existing properties which will be a real shame to England’s Heritage.
There is a transitional period where you can continue to zero rate the supply, so long as you have a signed contract dated on or before 20 March 2012 and the work is to be completed before 20 March 2013 (any works after this date will be standard rated). If there is no written contract you will need to be able to prove that at least 10% of the project was completed before budget day, 20 March 2012.