Question: I have a client who is carrying out extensive building modifications to a disabled person’s home. He has had conflicting advice from various contacts in the trade about VAT. Can all the work be zero-rated or are there limitations?

Answer: Your client cannot automatically zero rate his supply as the liability will depend on the nature of the work supplied. There is no general VAT relief on building modifications for disabled people or on purchases of building or construction materials. However, a number of specific reliefs exist within Value Added Tax Act 1994 (VATA 1994) Schedule 8 Group 12.