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Where Taxpayers and Advisers Meet

VAT Advice on renovating a residential property that has not been occupied for over ten years

jamesfrome
Posts:1
Joined:Wed Apr 13, 2022 7:23 pm
VAT Advice on renovating a residential property that has not been occupied for over ten years

Postby jamesfrome » Wed Apr 13, 2022 7:34 pm

Hello everyone!

Thank you for reading my post.

The context: I recently purchased a property in London. This property has not been lived in for over ten years. I am planning to live in the property after the renovation works are complete. The renovation works are expected to be carried out by a contracted building team. I have read VAT Notice 708 many times, but I am still conflicted about my position:

1. Am I eligible for VAT reduction to 0% or 5%?

I am confident that I am eligible for the 5% rule to the appropriate works and materials; however, I am unclear as to whether I am eligible for the 0% VAT - if I am eligible for this, can the 0% VAT be processed as the work and materials are carried out or is this done retrospectively through the DIY Housebuilders Scheme Claim Form (and how would this work given that I have contracted a team - would they charge 5% VAT as we go, and then I claim the 5% back after completion, or would they charge 20% VAT as we go, and then I claim the 20% back after completion)?


2. We are planning to rebuild the current roof, and convert the bathroom (on the ground floor) - we will knock down the existing structures and rebuild them - is the proportion of the works according to the original size applicable for reduced or zero VAT, or is the whole new structure (including the extension) applicable for reduced or zero VAT?


3. Please advise on anything else we we need to consider with this renovation project.


Thank you for any insight you can offer! :D

Best,

James

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