Disabled Lift

Disabled Lift

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Block of residential flats, freehold owned by a residents' management company of which ALL leasholders are shareholders. The company is not registered for VAT.

The lift is now 20 years old and needs major repairs and upgrading to be compliant with current legislation.

The lift contractors have 'suggested' that the repairs and upgrade might be exempt from VAT, on the grounds that disabled persons use it. In fact, there are three registered diabled persons in the block.

Have any correspondents made a successful claim for such relief?

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chips_at_mattersey
By Les Howard
06th Jul 2011 13:38

Zero rate installation of a lift

Notice 701/7, para 6.6 explains the circumstances in which you can do this. The problem is that the supply has to be made to the individual, to them in their own private residence. HMRC Internal Guidance (V1-7, chapter 12, para 11.5.2) indicates that the residence can be communal (although not a residential home), and therefore that it can apply. I suggest that this opens the door to zero rating.

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By kpdorset
06th Jul 2011 13:48

Not clear cut this one

I would say possibly 'no' on one point from VAT Notice 701/7:

because the lift would be for general use Para 3.5

supplies made widely available for a whole group of people to use as they wish. For example, a stair lift in a charity building for the use or convenience of all chronically sick or disabled persons who might use the building would not qualify for relief. This is because the charity is making the lift available for the general use of all those people who might require it, rather than for the personal use of specified individuals;

And Para 6.6 says

in the case of a disabled person, the lift you install is designed to help that person move between different floors of their private residence;

so this could be another no if HMRC don't consider the communal areas to be part of the person's private residence

I would ring HMRC and ask for their specialist VAT Reliefs for disable people team. They would give a definitive answer. But it is actually down to the builders/lift contractors to assess as they see it.

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