HMRC Brief 3 (2024): VAT Guidelines for Cladding Remediation Work and Input Tax Recovery

• HMRC published Revenue and Customs Brief 3 (2024) on VAT for cladding remediation work
• The Brief discusses deduction of VAT for remediation work on existing residential buildings
• Remediation work after construction is considered ‘snagging’ if linked to initial construction
• Snagging work subject to reduced or zero rate if initial construction was
• VAT on snagging work recoverable under normal rules
• VAT on remediation work potentially recoverable if linked to general business activity
• GfC11 provides more details on VAT treatment of remediation works and examples of applying HMRC’s rules

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.