Readers’ forum: VAT on contract for project management

My client operates in the construction sector principally providing project-management services for refurbishments of office buildings. He has been doing this for many years and has an excellent reputation in the sector.

A Jersey holding company which owns a number of UK companies but does not itself have an establishment in the UK has hired my client to assist in project managing the refurbishment of a major office complex in a UK city.

The office complex itself belongs to one of the group companies owned by the Jersey holding company but for reasons best known to the clients the contract is with the Jersey holding company which will recharge the works to the company which actually owns the property.

As this is a B2B supply the Jersey customer has suggested the supply should be zero rated. However I am...