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Where Taxpayers and Advisers Meet

VAT relief on legal fees for community hall

Lsp54
Posts: 75
Joined: Tue Sep 15, 2009 5:11 pm

VAT relief on legal fees for community hall

Postby Lsp54 » Fri Aug 09, 2019 10:28 am

Hi,
I am involved with a local village charity and we hope to build a community hall on a larger piece of community land. Substantial legal fees are being incurred just getting a lease signed with the local Parish Council. Any chance of zero rating being applied to the solicitors' fees?

Can anyone advise me how to get information/advice on how to proceed with a VAT zero-rating application?

Will partial relief apply if we include changing facilities for sports as well as a meeting hall, kitchen etc?

Any help will be much appreciated. Thank you.

pawncob
Posts: 4352
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: VAT relief on legal fees for community hall

Postby pawncob » Fri Aug 09, 2019 12:41 pm

Legal services to charities constructing a qualifying purpose building are standard rated.
See list in 708.

https://www.gov.uk/government/publications/vat-notice-708-buildings-and-construction/vat-notice-708-buildings-and-construction#what-relevant-charitable-purpose-means
With a pinch of salt take what I say, but don't exceed your RDA

les35
Posts: 557
Joined: Wed Aug 06, 2008 3:09 pm

Re: VAT relief on legal fees for community hall

Postby les35 » Fri Aug 09, 2019 4:57 pm

HMRC Notice is 708, and worth a read. Para 14.7.4, defining 'village halls' is wrong, though!
If a discrete part of the building will be used for non-eligible activities, then that part will be standard rated.

(We provide advice to many charities on zero rating of new community buildings. Do DM for an initial call.}

Lsp54
Posts: 75
Joined: Tue Sep 15, 2009 5:11 pm

Re: VAT relief on legal fees for community hall

Postby Lsp54 » Fri Aug 09, 2019 5:14 pm

Thank you so much for your reply. I've had a look at Notice 708. As you say it's very interesting. Just one other question: Do we have to register with hmrc as a qualifying build for zero-rating?
Thank you. Ps I may well be seeking specialist VAT advice on this.

les35
Posts: 557
Joined: Wed Aug 06, 2008 3:09 pm

Re: VAT relief on legal fees for community hall

Postby les35 » Fri Aug 09, 2019 8:16 pm

You don't have to register for VAT to benefit from zero-rating. In fact, depending on precisely what you do, you may not be able to. (I'm afraid that's where it can get quite tricky!)

Lsp54
Posts: 75
Joined: Tue Sep 15, 2009 5:11 pm

Re: VAT relief on legal fees for community hall

Postby Lsp54 » Fri Aug 09, 2019 8:46 pm

Thank you. It's a minefield by the sound of it. Will need to look into this very carefully.


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