VAT News

Housing Association Sector: Package Deals

11.07.2016

As Developers continue to look for new ways to engage with the sector much mention has been made of “Package Deals”. Working with the property specialist team at Hugh James solicitors, we recently delivered an event for the sector on how to “un-package” from both the legal and VAT perspectives this new approach.

As is often the case – irrespective of what you label the initiative – from the VAT perspective you still need to drill down to the transactional level, for example, who is delivering what services or goods to whom? what references are in the contracts relating to the obligations and considerations for both parties and is this reflected in the reality of the project being undertaken? An integral part of any consideration is the need to look at the practical issues which may include the following, the correct use and implementation of an option to tax, requirement for zero rating certificates, explore whether any of the available charitable reliefs are applicable, the Capital Goods Scheme implications and, of course, the Partial Exemption impact.

So Package Deals don’t remove the need to address the VAT aspects as early as possible in the planned development and that can include at the planning and design stage. Contact one of our Housing VAT team should the matter raise any questions for you.  julie.rawlinsonsmith@centurionvat.com or andrea.brindley@centurionvat.com