- 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.
