Household Automation has been vigorously campaigning over the past few years to gain 0% VAT rating for lighting control in new build properties. MD of Household Automation Ltd; Andy Ellis reports…
This month HMRC have published Notice 708: Buildings and Construction – August 2014. For the first time intelligent lighting (not including remote control hand sets) has been recognised as ‘ordinarily incorporated in a building”.
What does this mean in reality? – New build properties can now have intelligent lighting , heating and air-conditioning systems installed at 0% VAT.
As the managing director of a progressive home automation company, I have long been campaigning for intelligent systems to be zero rated. Because we deal with a variety of different equipment, it has always been difficult to segregate what is 0% VAT rated. With the issuing of the Notice 708 ( specifically section 13.8 “Examples of articles normally incorporated in a building” and 13.8.1 “Dwellings” ) things have become far clearer.
My interpretation is now that any part, of any intelligent BUS system used for lighting or heating that is part of a fixed installation can be zero rated for VAT in a new build property.
So as well as the standard components of lighting such as switches and dimmers, items such as in wall room controllers and touch screens can be included. With a comprehensive BUS set up (such as KNX) this in effect means that pretty much the whole system can be zero rated including light fitments and outside lighting.
With major building construction companies now having to seriously consider a proper technology infrastructure within their properties the zero rating of intelligent control will surely be a major incentive to specify intelligent systems.