Owners and users of new charity buildings or relevant residential properties (such as care homes and accommodation for students and school pupils) are often entitled to acquire these free of VAT. This is an invaluable benefit as most of these organisations are not entitled to fully recover VAT on new buildings. However, those who have claimed this relief must remain wary of a self-supply charge which can retrospectively reduce or eliminate the VAT-saving if they dispose of the building or change its use within ten years.
Source RSM
