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bigduckontax
bigduckontax, Accountant
Category: Tax
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Bigduckontax, Thanks , but the situation is not quite so

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HiCustomerThanks for this, but the situation is not quite so simple. There are currently lodgers in the house, but it is not a registered HMO. We will need to register as a large HMO (I think) after the building works as the number of lodgers will be increased. Does this constitute a suffficient change of use for 5% VAT rate, moving from non-HMO but with lodgers, to HMO?Many thanks,
JP
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

The wording is, JP:

'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.'

I am of the opinion that this covers the activity and the registration an an HMO during or post alteration will support the position.

Customer: replied 1 year ago.
OK great, thanks. Is this all something I can do on my own ie. applying for an HMO and then applying for the reduced rate of tax (and if so where can I find the relevant application forms), or is this something I need a professional for?
You say you are of the opinion that this is the case. Is that good enough then, or do I need to seek further approval legally?
Thanks,
JP
Expert:  bigduckontax replied 1 year ago.

You advise the builder that this is a Paragraph 7 conversion and he or she will apply the reduced rate of VAT.

You apply to the relevant Local Authority for an HMO. There is a possibility that this might be refused if the character of the area does not support the usage.

Customer: replied 1 year ago.
OK well that application won't come for about a year when the works are finished, so that's ok. I have notified the builder.
You say you are of the opinion that all of the above is the case. Is that good enough then, or do I need to seek further approval legally?
Thanks,
JP
Expert:  bigduckontax replied 1 year ago.

As far as I am aware, no JP. It is essentially the builder who has to be warned off about a reduced rate job.

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Expert:  bigduckontax replied 1 year ago.

Thank you for your support.

I see you have asked for your money back on the other question. I was going to tell you to do this, but was pre-emptied!