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Where Taxpayers and Advisers Meet

VAT on refurb, extension and conversion

Joined:Mon Jul 04, 2022 7:27 am
VAT on refurb, extension and conversion

Postby rik22 » Mon Jul 04, 2022 10:50 am

Hello everyone,

I was hoping to get some advice on VAT for a house project for my parents. It is an old cottage that was redundant for over 2 years and so pretty clear that 5% VAT applies for this. But there are other elements that I am not so sure on.

Firstly they are extending the house; i assume this is also ok for 5% VAT?

Then there is a barn that they have planning for auxiliary accommodation. I know if it was just this on its own then it would be 20% VAT but in that the works are associated to the main house and general refurbishment could it come under the 5% VAT?

Also they are looking to build a standalone garage; would this be 5% or 20%?

Many thanks

Joined:Wed Aug 06, 2008 3:09 pm

Re: VAT on refurb, extension and conversion

Postby les35 » Tue Jul 05, 2022 4:34 pm

I think these elements all qualify for the reduced rate: refurb; extension; garage.
Not sure about the ancillary accommodation. It depends in part on whether it will be used routinely by your parents.

Do check the various exceptions, such as white goods and brown goods - these will be standard rated.
And, agree the extent of the reduced rate with your building contractor(s). The purchase of building materials cannot be reduced rated.

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