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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4954
Experience:  FCCA FCMA CGMA ACIS
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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

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

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

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

Please be so kind as to rate me before you leave the Just Answer site.

bigduckontax and other Tax Specialists are ready to help you

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!