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Restoration & Refurbishment

Anyone have experience of applying the 5% rate of VAT to empty properties?

Anonymous user 23/02/2024 - 3.37 PM

Hi all, Currently looking at a full renovation of a property that has been empty for nearly 10 years. I'm interested to find out if any builders have experience in applying the reduced rate of VAT to projects involving empty properties? What would be the best way of managing a project to take advantage of the VAT reduction? Thanks in advance. Richard

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1 Answer

Saint Developments Ltd

Rating: 5 out of 5

Bury St Edmunds

As long as the domestic property has been uninhabited for over 2 years any renovations, alterations, hard landscaping or associated building works (garages, cart lodges etc) will qualify for a reduced rate of 5% VAT on materials and labour. Materials and labour costs have to be 'supplied', it's your building contractor who has to apply the reduced rate on your invoice, and will have to supply proof the property and works qualify to HMRC. This is normally through Council Tax records, or a letter from the Empty Property Officer at the local authority. Any VAT registered building contractor should be able to advise you on specifics after viewing the property.

Answered4 December 2020