- HMRC changes its view on VAT recovery of cladding remediation works
- Housebuilders welcome the change in stance
- Issue of unsafe cladding highlighted after Grenfell tragedy in 2019
- Michael Gove announced commitment to make companies pay for cladding replacement
- Controversy over VAT chargeability and recovery of cladding remediation costs
- HMRC previously considered cladding remediation as an overhead cost only in certain cases
- HMRC now accepts VAT incurred on cladding remediation as an overhead deductible in line with normal recovery
- Welcome news for housebuilders and developers
- Levels the playing field between voluntary and mandatory cladding replacement efforts
Source: osborneclarke.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
