From February 2024, there was an important VAT change that benefits many charities — particularly those involved in running village halls, sports facilities, and social clubs. We would like to help as many charitable organisations as possible benefit from this saving, so we wanted to clarify what it means and how it might apply to your organisation.
What’s the Change?
Charities can now qualify for zero-rating on certain construction and building services. This means that, where the criteria are met, no VAT is charged on eligible building works — which could result in significant savings.
Who Benefits?
This is especially relevant for:
-
Village halls
-
Charity-run sports clubs
-
Community social hubs
Previously, there was more ambiguity around which projects qualified. Now, the guidance is clearer, and the scope is broader — making it easier for these organisations to benefit.
What Does “Zero-Rating” Cover?
Zero-rating typically applies to:
-
Construction of new buildings used for charitable purposes
-
Some alterations to existing buildings
-
Associated building services when certain conditions are met
It’s crucial that the building is used solely for charitable purposes — and this doesn’t include general commercial use, even if run by a charity.
What Should You Do?
If you’re planning a building project or refurbishment and are a registered charity, it’s worth checking if you now qualify for zero-rating. You’ll need to provide a valid certificate to your supplier to confirm eligibility.
Here at Sealsixty we’re happy to help you navigate this. If you’re unsure, reach out to us — we’d be delighted to help further!