NHS Ayrshire & Arran’s Appeal on Zero-Rating Construction Costs for NSAIS Building Dismissed

• NHS Ayrshire & Arran Health Board sought zero rating for VAT on construction costs for a building project
• HMRC refused the request, leading to an appeal to the First-tier Tribunal
• The dispute focused on whether the Bedroom Wing of the building qualified for zero rating
• Zero rating required the Bedroom Wing to be used solely for a relevant residential purpose
• The Tribunal found the building did not meet the criteria for relevant residential purpose
• The Bedroom Wing was considered part of a hospital, providing medical treatment
• The appeal by the Health Board was dismissed, and zero rating was not granted

Source: taxscape.deloitte.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.

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