Pay only 5% VAT for some renovations
To take advantage of this, you must prove to the builder’s accountant that your property qualifies. Typically two or more pieces of evidence are required. Our clients have done this before using some of the following:
- confirmation from an estate agent that the house has been on the market, and empty for 2 or more years, if relevant;
- a death certificate of the previous occupant, or letter from a care home confirming the date at which they moved in;
- a rates bill showing the property listed as vacant;
- utilities bills showing decreased usage as it’s been unoccupied;
- letters from neighbours confirming that no-one has been living at the property for that time.
Once the contractor’s accountant is satisfied of the evidence, the contractor can then charge you the reduced 5% for any works you carry out. This can bring a great saving. Note the reduction does not extend to certain items such as professional services, and non-fixed internal fittings and appliances. Feel free to ask us any questions and we’ll do our best to answer based on our experiences with this VAT saving. Image by Jamie Trimble.