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Hot food and premises
The definition of ‘hot food’ will be clarified to confirm that the sale of all hot food, with the exception of freshly baked bread, is standard-rated. The meaning of ‘premises’ will be clarified by confirming that the sale of all food sold for consumption in areas adjacent to a retailer (such as a table and chairs outside a café) or in areas that are shared with other retailers (such as food courts in shopping centres) is standard-rated. The measure will have effect on supplies made on or after 1 October 2012.
Approved alterations to listed buildings
Currently the repair and maintenance of a protected building is standard-rated, but the approved alteration of a protected building is zero-rated.
New rules will result in:
- all building materials and construction services supplied in the course of an approved alteration to a protected building becoming subject to VAT at the standard rate
- a narrowing of the circumstances in which the first sale or long lease by a developer of a substantially reconstructed protected building can be zero-rated, so that only buildings reconstructed from a shell continue to benefit from the zero rate.
The measure will have effect on supplies made on or after 1 October 2012. Transitional arrangements will be put in place to protect contracts entered into before 21 March 2012. Anti-forestalling legislation will apply to supplies made on or after 21 March 2012.
VAT standard rate clarifications
It has been clarified that from 1 October 2012 the standard rate of VAT will apply to: self-storage, hairdressers’ chair rental, sports nutrition drinks and holiday caravans.