CVC Constable VAT Consultancy LLP

HMRC have issued Revenue & Customs Brief 26/10 reminding charities that the withdrawal of the 'charitable buildings' concession (ESC 3.29 also known as the '90 per cent concession') and a change in the interpretation of the term 'solely' as used in the phrase 'intended for use solely for a relevant residential or a relevant charitable purpose' will take effect from 1 July 2010. Charities wishing to make use of the concession must issue certificates before that date and by 1 January 2011, either:

• the building must have been constructed to a point above foundation level; or
• the charity must be in occupation of the building if it is being acquired or leased.