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Zero rates

The Value Added Tax Act 1994, section 30 holds that goods and services specified in Schedule 8 to the Act are zero-rated. Guidance is provided on the following zero rate groups:

• Schedule 8, Group 5, which specifies when the construction and the conversion of a building is zero-rated and the sale or long lease of a building is zero-rated
• Schedule 8, Group 6, which specifies when the alteration (and the supply of building materials with those services), sale, or long lease of a protected building is zero-rated.

Reduced rates

The Value Added Tax Act 1994, section 29A holds that goods and services specified in Schedule 7A to the Act are reduced-rated. Guidance is provided on the following reduced-rate groups:

• Schedule 7A, Group 6, which specifies when a residential conversion is reduced-rated
• Schedule 7A, Group 7, which specifies when the renovation and alteration of a building is reduced-rated.

Other provisions

The ‘change in use� provisions for certificated buildings are in the Value Added Tax Act 1994, Schedule 10, Part 2.

The rules that ‘block� developers from deducting input tax on goods that are not building materials are found in the VAT (Input Tax) Order 1992 (SI 1992/3222), articles 2 and 6.

The special time of supply rules for builders are found in the Value Added Tax Regulations 1995 (SI 1995/2518), regulation 93.

The rules for the self-supply of construction services are found in the Value Added Tax (Self-Supply of Construction Services) Order 1989 (SI 1989/472).

The rules for the Refund Scheme for do-it-yourself builders and converters are found in the Value Added Tax Act 1994, section 35; and the Value Added Tax Regulations 1995 (SI 1995/2518), regulations 200 and 201.