§ Mr. Heddleasked the Chancellor of the Exchequer what are his intentions arising out of the Budget as to liability for value added tax for owners of listed buildings the facade of which is retained on reconstruction but in respect of which the majority of the accommodation behind the facade is demolished and rebuilt.
§ Mr. HayhoeThe Budget resolution and Finance Bill provide for VAT to be charged on the reconstruction of any existing building. No relief is proposed for listed buildings (and there has been none for repair and maintenance work to them). In the type of case cited by346W my hon. Friend, Customs and Excise accept that where all that is left of an existing building is one wall such as a Front facade, a building making use of that single wall or facade would attract zero-rating as a new building. Where some other parts of the listed building remained standing, the particular facts of the case would have to be considered, but generally the work would fall within the description of reconstruction rather than new building, and it would therefore be standard-rated.