It is a common misconception that all services relating to the construction of new houses, and similarly that all goods and services supplied to disabled people can be zero rated. Your client is quite correct that the professional services of architects, surveyors, and anyone acting as a consultant or in a supervisory capacity are excluded from the zero rate for new builds under VATA 1994 Schedule 8, group 5, item 2, as confirmed by HMRC in VAT Notice 708 paragraph 3.4.1.
The goods and services that can be zero rated to a disabled person are set out in Schedule 8, group 12 and these are somewhat limited. In terms of building and construction services, the works that can be zero rated to a disabled person are:
- constructing ramps or widening doorways or passages to facilitate entry to or movement within their private residence;
- providing, extending or adapting a bathroom, washroom or lavatory in their private residence where this is necessary by reason of their condition;
- services necessarily performed in the installation of a lift to facilitate their movement between floors in their private residence, and
- the supply of goods in relation to the above services.
There is no provision in legislation for zero rating the services of an architect, and this is confirmed in Notice 701/7 at paragraph 6.7.
If the customer were to enter into a design and build contract for eligible works with the contractor as described in Notice 708 at paragraph 3.4.1 then this may be beneficial for them, but your client’s supply to the contractor would still be standard rated.
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