VCONST10010 - Zero-rating major interest grants in substantially reconstructed 鈥榩rotected buildings鈥�: about this section

This section provides guidance on when major interest grants in substantially reconstructed 鈥榩rotected buildings鈥� are zero-rated.

鈥楶rotected buildings鈥� is a VAT term and doesn鈥檛 include all listed buildings. VCONST08200 provides further explanation of this. The zero rate only applies to the first major interest grant in buildings that, after the reconstruction, are:

  • 鈥榙esigned to remain as or become a dwelling or number of dwellings鈥� (VCONST14300)
  • intended for use solely for a 鈥榬elevant residential purpose鈥� (VCONST15000)

or

  • intended for use solely for a 鈥榬elevant charitable purpose鈥� (VCONST16000).

There are occasions when the supply must be apportioned. VCONST10800 provides guidance on this.