VAT Update: October 2008

The latest VAT issues from first tier tax tribunal decisions, amended VAT rates and HMRC updates to relief schemes

Design and build contracts

When constructing zero-rated buildings, efficiency can be created by entering into a design and build contract whereby the professional services that must be subject to VAT are purchased by the construction company, which then provides a holistic zero-rated supply. The practical arrangements for this are sometimes only achievable where the main contractor is a subsidiary or captive company of the purchaser of the construction services.

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