Overview ― construction, conversion and renovation

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

  • Overview ― construction, conversion and renovation
  • Liability of supplies ― construction, conversion and renovation
  • VAT recovery ― construction, conversion and renovation
  • Other practical points ― construction, conversion and renovation

This guidance note provides an overview of the key VAT issues relating to the construction, conversion and renovation of buildings including:

  • the liability of supplies
  • VAT recovery
  • other practical points associated with construction, conversion and renovation
Liability of supplies ― construction, conversion and renovation

The liability of supplies related to construction, conversion and renovation is a complex area of VAT.

The table below summarises the VAT liability of various supplies associated with construction, conversion and renovation (in general terms) and provides links to more detailed guidance notes.

In-depth commentary on the legislation and case law surrounding the reliefs available for certain construction works can be found in De Voil Indirect Tax Service V4.231 (zero-rated supplies relating to buildings and construction) and De Voil Indirect Tax Service V4.411V4.413 (reduced-rated supplies relating to buildings and construction).

Type of supplyVAT treatmentCommentary
Construction of certain new residential buildingsZero-ratedConstruction ― zero-rating of construction services; De Voil Indirect Tax Service V4.238

More on Buildings and construction: