{"alias":"contentPage","byline":null,"standfirst":null,"content":{"layouts":[{"type":"sidebar","areas":[{"items":[{"gridType":"RichTextBlock","content":"\u003Ch3\u003EGeneral\u003C/h3\u003E\n\u003Cp\u003E\u003Cspan\u003EConstruction of buildings is mentioned section 6.1.3 of Notice 701/1 and covered in detail in VAT Notice 708, with items relevant to facilitating access by disabled persons covered in VAT Notice 701/7. Most VAT notices are well-written but the subject matter can be very complicated.\u003C/span\u003E\u003Cbr\u003E\u003Cbr\u003E\u003Cspan\u003EThe following is intended as a quick introduction to the rules. However, this is a very complex area with many exceptions to general rules. Do not act solely on what is written here. Study the VAT notice or other information given by HMRC. You might also wish to contact HMRC or to seek professional advice.\u003C/span\u003E\u003C/p\u003E","gtmId":"","gtmClass":""},{"gridType":"RichTextBlock","content":"\u003Ch3\u003ENew buildings with \u2018relevant charitable use\u2019\u003C/h3\u003E\n\u003Cp\u003E\u003Cspan\u003EIf you purchase or construct a new freehold building or a building on a long lease exceeding 21 years, and it is for a \u2018relevant charitable use\u2019 then the construction cost can be zero-rated for VAT. \u2018Relevant charitable use\u2019 means it is either used solely for non-business charitable purposes or as a \u2018village hall or similarly\u2019.\u003C/span\u003E\u003Cbr /\u003E\u003Cbr /\u003E\u003Cspan\u003EThe word \u2018business\u2019 has a wider interpretation in VAT legislation than usual. For many years HMRC maintained that buildings used for typical scout group activities had a \u2018business\u2019 use because payments were made by or on behalf of members to take part. That meant the only way to qualify for zero-rating was to fall within the \u2018village hall\u2019 provisions. Following long negotiations HMRC have modified their approach and many scout buildings will now be accepted as having \u0027non-business\u0027 use.\u003C/span\u003E\u003Cbr /\u003E\u003Cbr /\u003E\u003Cspan\u003EHMRC have recently accepted that subscriptions are not \u2018business income\u2019. If the only use of a building is scouting activities financed by subscriptions and donations, then the building has non-business use and can qualify for zero-rating subject to meeting detailed requirements.\u003C/span\u003E\u003C/p\u003E","gtmId":"","gtmClass":""}]},{"items":[{"type":"Promo","cta":"","body":"\u003Cul\u003E\n\u003Cli\u003E\u003Ca rel=\u0022noopener\u0022 href=\u0022https://www.gov.uk/guidance/how-vat-affects-charities-notice-7011\u0022 target=\u0022_blank\u0022 title=\u0022How vat affects charities\u0022\u003E701/1 Charities\u003C/a\u003E\u003C/li\u003E\n\u003Cli\u003E\u003Ca rel=\u0022noopener\u0022 href=\u0022https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708\u0022 target=\u0022_blank\u0022 title=\u0022708 buildings and construction\u0022\u003E708 Buildings and Construction\u003C/a\u003E\u003Ca rel=\u0022noopener\u0022 href=\u0022https://www.gov.uk/government/publications/vat-notice-708-buildings-and-construction/vat-notice-708-buildings-and-construction\u0022 target=\u0022_blank\u0022\u003E\u003Cbr /\u003E\u003C/a\u003E\u003C/li\u003E\n\u003Cli\u003E\u003Ca rel=\u0022noopener\u0022 href=\u0022https://www.gov.uk/guidance/reliefs-from-vat-for-disabled-and-older-people-notice-7017\u0022 target=\u0022_blank\u0022 title=\u0022Reliefs from VAT for disabled and older people (VAT Notice 701/7)\u0022\u003E701/7 VAT Reliefs for Disabled People\u003C/a\u003E\u003C/li\u003E\n\u003C/ul\u003E\n\u003Cp\u003E\u00A0\u003C/p\u003E\n\u003Cp\u003E\u00A0\u003C/p\u003E","link":null,"colour":"#ffffff","title":"VAT Notices issued by HM Revenue and Customs","image":null,"imageFocus":"","imageId":0,"imageKey":"00000000-0000-0000-0000-000000000000","imageCrop":"","gridType":"card","gtmId":"","gtmClass":""}]}],"config":null}]},"searchDescription":"VAT on construction of new buildings for Scouting","pageType":null,"location":null,"browserTitle":"","versionDate":"15 July 2023","reviewDate":"22/10/2020","redirectUrl":"","id":47235,"nodeName":"VAT on construction of new buildings for Scouting","title":"VAT on construction of new buildings for Scouting","type":"contentPage","image":null,"assets":null,"headerOptions":{"headerTitle":"VAT on construction of new buildings for Scouting","headerSubTitle":"","headerCta":"","headerCtaText":"","headerCtaLink":"","headerBackgroundColour":"","showSEOImage":false,"headerBackgroundImage":null,"quickLinks":[]},"subHeader":"VAT on construction of new buildings for Scouting","silktide":"eyJjbXMiOiJVbWJyYWNvIiwiZWRpdG9yVXJsIjoiaHR0cHM6Ly9wcm9kLWNtcy5zY291dHMub3JnLnVrLy91bWJyYWNvIy9jb250ZW50L2NvbnRlbnQvZWRpdC80NzIzNSJ9","canonicalUrl":"https://www.scouts.org.uk/volunteers/running-things-locally/finances-and-insurance/vat/vat-on-construction-of-new-buildings-for-scouting/"}