Andrew Needham highlights some practical issues on the availability of the 5% VAT rate.
A lower VAT rate of 5% applies to certain building works; but when does it apply, and what documents will the developer and builder require?
The 5% rate
The 5% rate applies to the following:
- Renovating residential property that has been empty for more than two years
- Where there is a change in the number of dwellings
- Converting a commercial building into residential use
- Conversion into a house of multiple occupation (HMO)
- Conversions to relevant residential buildings, for example old people’s homes, children’s homes
