Renovations and alterations ― reduced-rating works on empty homes

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Renovations and alterations ― reduced-rating works on empty homes
  • When can renovation works be reduced-rated?
  • What are ‘qualifying residential premises’?
  • What are ‘qualifying services’?
  • How is the two-year rule determined?
  • When does the supplier need a reduced-rating certificate?
  • What are the rules around building control and planning consent?
  • Can reduced-rating apply to garages?
  • Practical points ― renovations of empty homes

This guidance note explains when certain renovation works on empty residential properties can qualify for the reduced rate of VAT For an overview of the liability of construction services more broadly see the Overview construction conversion and renovation guidance note In depth commentary on legislation and case law relating to reduced rated renovations is contained in De Voil Indirect Tax Service V4 413 When can renovation works be reduced rated It is possible to reduced rate renovation services when the following conditions are satisfied the premises being renovated or altered are qualifying residential premises the services are qualifying services the premises have not been lived in for at least two years if appropriate a valid certificate is held if appropriate planning consent building control approval has been obtained VATA 1994 Sch 7A Group 7 Notice 708 para 8 1 2 These conditions are explored further in this guidance note What are qualifying residential premises Qualifying residential premises include the following a single household dwelling a multiple occupancy dwelling a building or part of a building that was used for a relevant residential purpose when last lived in and will be used solely for that purpose once the work has been completed a building or part of a building that was one of a number of buildings that were together used for relevant residential purposes when last lived in and will be used solely for that purpose once the work has been completed VATA 1994 Sch 7A Group 7 Notes 2 4A What is a single household dwelling For the meaning of a single household dwelling see the Buildings and construction definition of single and multiple household dwellings guidance note VATA 1994 Sch 7A Group 7 Note 2 What is a multiple occupancy dwelling For the meaning of a multiple occupancy dwelling see the Buildings and construction definition of single and multiple household dwellings guidance note VATA 1994 Sch 7A Group 7 Note 2 What is

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