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VAT & Property Issues Update

Further to my original VAT Property blog posted November 2013 some recent changes are worth drawing attention to. HMRC leaflet VAT Notice 708: buildings and construction has now been updated and a useful summary of vat applicable rates for different construction projects is listed as follows:

Construction Services

The construction of a new building and work to an existing building is normally standard-rated. There are, however, various exceptions to this.

Information about these exceptions can be found at the following sections:

Construction Service Rate of VAT Further Information
Construction of new qualifying dwellings and communal residential buildings, and certain new buildings used by charities. 0% Section 3
Conversion for a housing association of a non-residential building into a qualifying dwelling or communal residential building. 0% Section 6
Conversion (other than for housing associations) of a non-residential building into a qualifying dwelling or communal residential building and conversions of residential buildings to a different residential use. 5% Section 7
Renovation or alteration of empty residential premises. 5% Section 8
Approved alterations to listed dwellings and communal residential buildings, and certain listed buildings used by charities (rate shown with effect from 1 October 2012) 20% Section 9
Alterations to suit the condition of people with disabilities. 0% Notice 701/7 VAT reliefs for disabled people
Installation of energy saving materials; and grant funded heating system measures and qualifying security goods. 5% Notice 708/6 Energy-saving materials
Development of residential caravan parks. 0% Section 20
First time gas and electricity connections 0% Notice 701/19 Fuel and power
Installation of mobility aids for the elderly for use in domestic accommodation 5% Reduced-rate VAT on mobility aids for older people

As you will be aware, property is a complex area of VAT, therefore if you require any additional advice from our experts please do not hesitate to get in touch.