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:
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.