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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4973
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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If a property that has been unused for about 10 years is

Customer Question

If a property that has been unused for about 10 years is renovated is the work that is carried out subject to vat at 5% ? Also if one of the walls of the renovation is moved a metre to make room for a new build is the work also subject to vat at 5% because it is a renovation or 0% because it is for the new build?
Submitted: 8 months ago.
Category: Tax
Expert:  taxadvisor.uk replied 8 months ago.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.

Customer: replied 8 months ago.
Thank you.
Expert:  taxadvisor.uk replied 8 months ago.

Thank you for your question..

In order to qualify for VAT at reduced rate, the property has to be used solely for a relevant residential purpose. This is explained in Secs 8 and 14.6 of VAT Notice 708 here

https://www.gov.uk/government/publications/vat-notice-708-buildings-and-construction/vat-notice-708-buildings-and-construction#reduced-rating-the-renovation-or-alteration-of-empty-residential-premises

Moving one of the walls by a meter as part of renovation would also be subject to VAT at 5% and not 0% if the the conditions as outlined in Secs 8 and 14 are met.

I hope this is helpful and answers your question.

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