Phased Works

Although a case specifically concerning itself with new build for charitable and residential purposes; the York University Case does contain useful insight into how HMRC (and the Courts) consider phased works. This can be applied to 5% schemes where properties are either converted or brought back into use after a period of abandonment. The 5% VAT rate relates to the physical conversion of such a property and once ‘complete’ the 5% rate is expired.