|
Home News VAT Capital allowances Testimonials FAQ Links Contact us |
Charitable developments
WHO CAN BENEFIT? Not for Profit Organisations Sports Clubs Schools Colleges Community Centres Places of worship  SOLUTIONSConsultancy Compliance Apportionments HM Revenue and Customs SPECIFIC SPECIALIST AREAS Planning permission VAT advice VAT efficient project procurement Building contract VAT advice Comparative building cost analyses Building usage analysis CASE STUDY A not for profit sports club has received funding to refurbish its existing facilities and construct an adjoining building to house a new community centre for the local community. The construction costs are £1.8million of which £400,000 relate to the construction of the new community centre. The VAT cost could be as much as £315,000. By virtue of the zero-rating rules that apply to certain charitable use buildings and in particular annex buildings used for this purpose a VAT saving in the region of £70,000 can be made. Careful consideration of the qualification criteria are necessary to ensure HM Revenue and Customs do not judge the development to be entirely standard rated at 17.5%. This includes consideration of the usage of the building, the status of the trustees of the community hall, the degree of independence of the community hall building, the issuing of the relevant certification by the trustees and the apportionment of costs for the builder contractor. A report to HM Revenue and Customs secures the savings. A degree of commercial use in the existing building may lead to further VAT recovery if the occupier is registered for VAT and recovers VAT costs incurred in the refurbishment works. |
|||||||
 |
T:020 8878 5476 T:020 8123 8573 T:01225 427100 |
 |
 |
|
