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Where Taxpayers and Advisers Meet

VAT on Refurbishment to Residential Property

judexda
Posts:1
Joined:Sat Oct 07, 2017 4:25 pm
VAT on Refurbishment to Residential Property

Postby judexda » Sat Oct 07, 2017 4:34 pm

We are looking to start the refurbishment works on a house that will become our main residence.
The property has not been lived in since September 2015 when the previous owner moved into a home.
We bought the property in April 2016.
We can prove from the electricity and water readings that the property was uninhabited from September 2015.
Is this sufficient proof for HMRC that the property has been unoccupied for at least 2 years?
We want to be charged at the lower rate of 5% on the grounds that the property has been unoccupied for 2 years.
Can we proceed on this basis?
If so - should we instruct contractors to charge us at the 5% rate, or do we get charged at 20% and claim back from HMRC?

Thanks.

RMC
Posts:435
Joined:Wed Aug 06, 2008 3:35 pm

Re: VAT on Refurbishment to Residential Property

Postby RMC » Sat Oct 07, 2017 11:24 pm

1, Detailed conditions for reduced rating are in VAT Notice 708: buildings and construction, para 8.1 to 8.5.
2, The contractors carrying out the renovations should chargé 5% VAT if you provide them with details of periods the property was ynoccupied.

les35
Posts:639
Joined:Wed Aug 06, 2008 3:09 pm

Re: VAT on Refurbishment to Residential Property

Postby les35 » Mon Oct 09, 2017 5:29 pm

I think the electricity and water readings are adequate evidence for the 2 year rule. You might seek additional evidence from the local authority Empty Property Officer just to reinforce this.


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