VAT and disability

New-build property is zero-rated as a matter of general VAT law

Zero-rating in respect of items installed in new build property is on an ‘item by item’ basis, and can cover the following items specific to the disabled:

1. Electrically or mechanically adjustable beds designed for invalids

2. Chair lifts and stair lifts

3. Hoists and lifters

4. Hydrotherapy pools

5. Kitchen equipment designed solely for use by a disabled person, or adapted for use by a disabled person, together with the services of installation or adaptation.

In addition, there is general VAT zero-rating for various items installed in new build property, provided they meet the following criteria:

1.They are incorporated in the building or site

2. They are ordinarily incorporated by builders in a residence

3. Other than kitchen furniture, the articles are not finished or prefabricated furniture

4. The articles are not electrical or gas appliances (with the exceptions below)

5. The articles are not carpeting

Examples of articles incorporated in a building are:

1. Built-in and fitted kitchen furniture

2. Built-in, wired-in or plumbed-in appliances such as boilers or wired-in storage heaters. The appliance must be designed to achieve one of the following:

i.    The heating of space or water
ii.    Provision of ventilation, air cooling, air purification or dust extraction
iii.    A burglar alarm, fire alarm or fire safety equipment designed to summon aid in an emergency
iv.    A lift or hoist

3. Flooring (but not carpet)

4. Trees and plants (only where required as a condition of planning permission)

Articles ordinarily incorporated in a dwelling

• Air conditioning;
• Bathroom accessories, such as fixed towel rails, toilet roll holders, soap dishes;
• Builders’ hardware;
• Burglar alarms;
• Curtain poles and rails;
• Decorating materials;
• Doors;
• Dust extractors and filters (including built-in vacuum cleaners);
• Fencing permanently erected around the boundary of the dwelling;
• Fireplaces and surrounds;
• Fire alarms;
• Fitted furniture (only kitchen furniture are ‘building materials’)
• Flooring materials (carpets are not ‘building materials’);
• Gas and electrical appliances when wired-in or plumbed-in (only certain gas and electrical appliances are ‘building materials’ – see above)
• Guttering;
• Heating systems (including radiators and controls, ducted warm-air systems, storage heaters and other wired in heating appliances, gas fires and solar powered heating);
• Immersion heaters, boilers, hot and cold water tanks;
• Kitchen sinks, work surfaces and fitted cupboards;
• Letter boxes;
• Lifts and hoists;
• Light fittings (including chandeliers and outside lights);
• Plumbing installations, including electric showers and ‘in line’ water softeners;
• Power points (including combination shaver points);
• Sanitary ware;
• Saunas;
• Shower units;
• Smoke detectors;
• Solar panels;
• Solid fuel cookers and oil-fired boilers;
• Swimming pools inside the house, including water heaters and filters but not diving boards and other specialist equipment;
• Turf, plants and trees (the incorporation of trees and plants in the site of a building is only supplied in the course of the work being carried out as a condition of planning permission);
• TV aerials;
• Ventilation equipment (including cooker hoods);
• Warden call systems;
• Window frames and glazing;
• Wind and water turbines; and
• Wiring (including power circuits and computer, phone and TV cabling).