The construction or development of new dwellings, qualifying residential or qualifying charitable property is zero-rated for the purposes of value added tax (VAT)1. A garage built at the same time as the dwelling for use with it will usually also benefit from zero-rating. Work of converting a non-residential property into residential property and of converting, for example, a house into flats, and renovation of a dwelling which has been empty for two years or more, is chargeable at the five per cent rate2.
A residential developer, building new houses and flats for sale, will be able to recover his input
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and millions of others like it, sign-in to LexisLibrary or register for a free trial.
EXISTING USER? SIGN IN
TAKE A FREE TRIAL
0330 161 1234