Andrew Needham looks at the circumstances where a building can be considered empty for the application of the 5% VAT rate on building works.
There are a number of circumstances in which the lower rate of 5% can apply to renovating or converting residential properties. One of the areas where the 5% rate applies is where a residential property has been empty for two years or more.
This may sound like a straightforward condition; but as is often the case with VAT, it can be difficult to prove that a property has been empty for more than two years, and what does HMRC consider to be ‘empty’?
What proof do I need?
For the reduced rate to apply, a property owner will need to show that the building has not been lived in during the two years immediately before work
