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VCONST17300 | Apportionment for part-qualifying buildings: apportionment rules - reduced-rating

From HM Revenue & Customs · VAT Construction

The law - Value Added Tax Act 1994, Schedule 7A, Group 6 (residential conversions)

Paragraph 1 of the notes to Group 6.

The law - Value Added Tax Act 1994, Schedule 7A, Group 7 (renovation and alteration of dwellings)

Paragraph 1 of the notes to Group 7.

Applying the apportionment rules

The rules do two things. It allows supplies that:

  • only relate to the qualifying works to be reduced-rated

  • relate to both qualifying and non-qualifying works to be apportioned so that the element relating to the qualifying works can be reduced-rated.