Property Archives - Berthold Bauer Consultants

Spring Budget: VAT for the Building and Property Sector

by Berthold Bauer on March 17, 2023

On Wednesday 15^th March 2023, the Spring Budget was delivered by Jeremy Hunt, Chancellor of the Exchequer. The Budget covered a number of measures which you can find here. We have covered a couple of key VAT updates specific to the buildings and property sector below.

October 2021 Budget

by Berthold Bauer on October 27, 2021

The autumn 2021 budget, released today, was quiet from a VAT perspective.

Simon Merry presents at Qandor Founding Forum Workshop

by Berthold Bauer on September 20, 2019

Berthold Bauer VAT Consultants Managing Director Simon Merry was delighted to be asked to speak at the Qandor Property Club’s ‘Founding Forum Workshop’ on 19th September 2019.

New HMRC VAT Rules: Building Contractors to become responsible for sub-contractors VAT

by Berthold Bauer on June 21, 2018

A new VAT Accounting procedure is to be implemented in October 2019 whereby the Main Contractor will become responsible for a sub-contractors VAT. In the same way in which the Construction Industry Scheme has addressed the missing tax aspect of labourers and small traders in the construction industry (by placing the burden of tax collection on Main Contractors & Developers); the purpose of the Reverse Charge for Construction Services is to reduce the occurrences of ‘disappearing trader fraud’.

RIBA Interview with Berthold Bauer MD Simon Merry

by Berthold Bauer on April 6, 2018

Berthold Bauer’s Managing Director Simon Merry was recently interviewed by the RIBA, in particular to discuss whether architects should or should not talk to their clients about VAT.

VAT & Construction Post-Brexit?

by Berthold Bauer on January 17, 2018

VAT accounted for nearly a quarter of all UK tax revenues in 2015/2016; so it’s virtually guaranteed it will remain in place after Brexit (VAT in one form or another being in place for many non-EU countries: Switzerland, Norway, Israel & now even the United Arab Emirates).

Construction VAT Update: ‘Demolition by stealth’

by Berthold Bauer on May 10, 2017

It is common for new builds to either begin life as extensions / partial build – either becoming full demolition by a gradual erosion of the planning process or due to unforeseen structural weaknesses. Zero rating for new builds hinges on the Demolition Test, a key aspect of the test being that planning consent is in place for the full demolition of any existing structures.

Construction VAT Update: ‘VAT charged in error’ – DIY Scheme

by Berthold Bauer on April 10, 2017

The DIY refund scheme is intended to reimburse owner occupiers the VAT suffered on materials – and in the case of Conversions – the 5% VAT charged by Contractors.

Spring Budget 2017

by Berthold Bauer on March 9, 2017

Unfortunately the Chancellor did not announce any new VAT reliefs or incentives today in his budget; but there were a few relevant announcements:

Construction VAT Update: When is a dwelling not a dwelling for VAT?

by Berthold Bauer on March 5, 2017

The first case concerned overall eligibility for a DIY Reclaim. Whilst Mr & Mrs Treanor had been granted permission for a residential unit, it was limited to occupation and use with an adjoining workshop. Whilst the Tribunal sympathised with the Treanors, they found that HMRC were correct to reject the claim as being a ‘live-work’ unit and not passing the test of ‘being designed as a dwelling’.