Where a new build is designed to be used for a relevant charitable purpose (RCP), its construction can be zero rated, removing 20% VAT from the cost to the charity. In order to be classed as an RCP and get VAT relief, the charity needs to certify that it will use the new building for either nonbusiness purposes, or as a village hall or providing social or recreational facilities for a local community.

Both conditions have been debated multiple times over the years, with what qualifies as non-business use being the issue of a recent decision in the First-Tier Tribunal. Where no charge is made to anyone for using the building, this will normally be clearly a non-business activity. If a building is intended to be at least 95% used for such activities, RCP relief should apply. On the contrary, where a charge is made, this will usually (but not always) be a business activity and preclude claiming RCP relief.