New HMRC policy issued for VAT and “borderline anomalies”

On 3 September 2012, HMRC released seven VAT Information Sheets and one Business Brief detailing its future policy in respect of “borderline anomalies”, as announced in the March 2012 Budget (see Gabelle’s report here). 

Most of these changes take effect from 1 October 2012.  To pick out two highlights:

  • The zero-rating for alterations to protected buildings has been withdrawn, but there are transitional rules until 30 September 2015.
  • There are additional rules before a supply of hot food can be zero-rated, though there is already discussion of challenging some of HMRC’s guidance for these new rules.

Please click the links below to read the documents released by HMRC:

Revenue & Customs Brief 27/12 VAT: Addressing borderline anomalies – guidance

VAT Information Sheet 09/12 – VAT Anti-forestalling for approved alterations to listed buildings and the self storage sector

VAT Information Sheet 10/12 – Approved alterations to listed buildings

VAT Information Sheet 11/12 – Taxing holiday caravans

VAT Information Sheet 12/12 – Hot food and premises

VAT Information Sheet 13/12 – Hairdressers’ chair rental

VAT Information Sheet 14/12 – Self storage

VAT Information Sheet 15/12 – Sports nutrition drinks

Vaughn Chown (VAT) or Kevin Hall (VAT) will be happy to discuss these new HMRC policies further.  Please contact the TaxDesk on 0845 4900 509.