HMRC Guidelines: VAT on Cladding Remediation Work – New Brief and Compliance Guidelines Released

• New HMRC publications: VAT on cladding remediation work
• Many buildings need unsafe cladding replaced after Grenfell fire
• Brief clarifies HMRC policy on VAT deduction for cladding remediation on existing residential buildings
• VAT costs incurred for remediation works due to fire and safety defects
• VAT recovery depends on whether work qualifies as snagging
• Snagging defined as remedial works to correct faulty workmanship or materials
• Snagging not seen as separate supply of construction services
• Guidelines for Compliance GfC11 covers VAT treatment of remedial works
• Policy on VAT treatment of remedial works has not changed

Source: deeksvat.co.uk

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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