Readers’ forum: Zero rating

I act as trustee for a charity that has three sources of income: course fees; donations; and council grants. The council grants are not target based but help to subsidise the courses. The courses encourage outdoor exercise and recreational activities for people with mental health challenges – each person pays a fee to help towards tutor and other costs but a profit is never made on any event.

We intend to construct a new building on some land owned by a farmer – the farmer will rent the land to us on a 999-year lease for a peppercorn rent of £1.

We are not registered for VAT but is there scope to obtain zero rating on the project costs? The building will be used for staff administration course organisation and then charitable purposes – the free use of workstations for people who need a computer to apply for jobs...