A “protected building” includes dwellings and a building that is to be used solely for a relevant residential purpose or relevant charitable purpose and is either a listed building within the meaning of the Planning (Listed Buildings and Conservation Areas) Act 1990 or a scheduled monument as defined in the Ancient Monuments and Archaeological Areas Act 1979 (or within the terms of the equivalent legislation in Scotland and Northern Ireland).

Until 1 October 2012 zero rating applied to the sale of a protected building following a substantial reconstruction and to approved alterations (where listed building consent has been given) to a protected building.

From 1 October 2012, approved alterations became subject to VAT at the standard rate and the circumstances in which the first sale or long lease by a developer of a substantially reconstructed protected building can be zero-rated have been narrowed, so that only buildings reconstructed from a shell continue to benefit from the zero rate. Transitional arrangements meant that zero rating continued to apply until 30 September 2015 to projects for which listed building consent had already been applied for by 21 March 2012.