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Where Taxpayers and Advisers Meet

Residential property or not

Joined:Thu Jul 16, 2009 12:39 pm
Residential property or not

Postby Nonimous » Tue Nov 24, 2020 4:14 pm

I have a client who has bought a former care home which she is turning into a residential property for herself
She asked about the DIY builders VAT refund scheme.
My query as follows:

- I am assuming that the care home is a relevant residential property and therefore she is out of luck on the DIY portion since it is a residential building already
- But is it currently a dwelling, and if so, is it one or a building housing multiple dwellings? I am thinking about the reduced rate for changing the number of dwellings - which may also not apply.

Joined:Wed Aug 06, 2008 3:09 pm

Re: Residential property or not

Postby les35 » Wed Nov 25, 2020 2:37 pm

The DIY scheme will not be applicable if the building has been used as a RRP in the previous ten years.
The reduced rate looks more likely, as a RRP to dwelling conversion is covered by the HMRC guidance. You should probably have a specialist look at it and give you a written note to confirm. Contractors may want some reassurance if you are asking them to invoice at 5% instead of 20%.

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