VENSAV3101 | meaning of buildings intended for use solely for a relevant charitable purpose

From 1 February 2024, the relief for the installation of energy-saving materials in buildings intended for use solely for a relevant charitable purpose was reinstated.

‘Use for a relevant charitable purpose’ means, use by a charity in either or both the following ways, namely;

• otherwise than in the course or furtherance of a business

• as a village hall or similarly in providing social or recreational facilities for a local community

If energy-saving materials are installed in such buildings, reasonable steps should be taken to ensure that the building will be used for a relevant charitable purpose and the appropriate documentation retained. This might include, for example, asking a customer to provide a letter confirming the intended use of the building.

A charity that merely makes a building available to another party (charity or otherwise) for no charge, isn’t using the building for a relevant charitable purpose. The building must be used for the relevant charitable purpose in its day-to-day activities.

There is no requirement for a customer to provide an installer with a certificate (as is the case with some other construction projects).

Further information about buildings for relevant charitable purposes can be found in section 14 of Buildings and construction (VAT Notice 708) and in VCONST16400