Disabled VAT relief & other schemes
For those companies and individuals eligible, there are instances where either the purchase of new lift equipment or the ongoing lift or stairlift maintenance can be offset or have a reduced rate of VAT. We've outlined the schemes available. If you believe you may be entitled to disabled VAT relief, please investigate further as eligibility is down to individual/company circumstances.
For those with a disability 0% VAT on lifts and ongoing maintenance & repair
You do not have to pay VAT if you're having a lift installed to help you move between floors of your home because someone in your home has a disability. If the original supply is zero-rated, then the subsequent repairs and maintenance is too, provided the eligible disabled person still used the lift - meaning 0% VAT on stairlift repair and lift maintenance.
The government have provided information on VAT relief on certain goods if you have a disability and VAT relief on certain building work if you have a disability.
To check the conditions for VAT relief, you can view notice 701/7 VAT Relief for Disabled People on the HMRC website. Or you can call the National Advice Service on 0845 010 9000.
To apply for VAT exemption, please fill in the F124a VAT form and return it to Stannah. The person applying must be sure of their VAT relief eligibility before completing the declaration. The products must be for that person only or installed in a domestic situation.
For charities, certain goods and services for disabled people may be VAT-free
Some charities can be eligible for VAT-free installation or repair and maintenance of lifts in certain charity buildings. Whether a building qualifies depends on the lift use, so only some will apply.
A charity can also buy a stairlift VAT-free because of a person's disability, however, only if they're for the personal or domestic use of a chronically sick or disabled person.
VAT-free lift repairs and maintenance will depend upon the purpose of the building. Charities may be eligible if they provide accommodation for at least one eligible person.
The government have provided information on VAT relief for charities on goods and building work for disabled people.
Reduced VAT for lifts
Under Buildings and Construction (VAT Notice 708), reduced rate VAT may apply. Eligibility should be checked by the tax department, as it is a complex area based on the type of project.
Claiming a VAT refund on lifts in new house builds
Lifts are eligible to claim back as part of the VAT refund if you are a DIY housebuilder of new houses under VAT Notice 431, claiming the VAT incurred on the supply and installation of the lift directly from the HMRC within three months of project completion.
Higher first-year capital allowance for lifts
The upfront capital allowance super deduction measure aims to stimulate business investment. It does so by increasing the incentive to invest in plant and machinery by offering higher rates of relief.
Any replacement lifts, escalators and moving walkways purchased between 1 April 2021 to 31 March 2023 qualify for a 50% special rate (normally 6%). This is managed through your accounts department.
Example: A £50,000 lift would qualify for £25,000 allowances in the first year. The remaining £25,000 would then qualify for a 6% allowance on a reducing balance basis (£1,500 year 2, £1,410 year 3, etc.).
Contact us for further information. We are here to help.