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HMRC’s Policy on VAT Deduction for Cladding Remediation: Insights and Updates (2024)

  • Insight by Jimmy Davies and Bradley Gibney clarifies HMRC’s policy on VAT for cladding remediation works
  • Background on Grenfell Tower tragedy leading to focus on cladding safety
  • Government commitment to make companies pay for unsafe cladding replacement
  • HMRC’s previous rejection of VAT relief on remediation costs
  • HMRC’s position on input tax deductibility for developers
  • HMRC’s updated policy on deducting VAT for remediation costs
  • Controversy over HMRC’s restrictive position on deducting VAT for remediation works
  • Developers voluntarily undertaking remediation works may not be able to deduct VAT
  • HMRC’s changing stance on deducting VAT for remediation costs

Source: mha.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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