We recently advised a mental health Trust on the VAT implications of purchasing a building for £6.8m which had been constructed in the last four years for residential purposes and was being purchased by the Trust for conversion to a mental healthcare unit. The vendor of the property had previously achieved zero-rating VAT relief on the construction of the property for residential use and had asked the Trust to sign a contract confirming that the Trust would continue to use it for this purpose. Because of the ‘clawback’ rules on the change of use of a building within ten years of its construction, the Trust would have been liable to a potential VAT charge exceeding £700K had it not sought our advice to alter the clauses in the contract, putting the onus on any VAT.