VAT free work on empty house?

[Keenoonvino]

Wondering if someone can clear this up for me? I've heard that if you buy a house that has been empty you can do building work on it VAT free for a couple of years afterwards? Does anyone know if this is true and if so how long the property has to be not lived in prior to the work taking place?

Thanks!

VAT rules on construction are quite complicated but there is a guide here
you may qualify for reduced rate (5%) on renovating an empty property but their are particular conditions that must be met. The specifics are in 8.1.1

I always thought rather than this planning faff the government has made on vaguely extending permitted development, if they reduced VAT on renovation they would get an uplift in construction figures and improve the green credentials of our housing stock in one go. But at the moment the rules are very complicated.

far too sensible an idea, wonkylegs !!

thanks wonky. It looks as though either way the property needs to be empty for at least 2 years. the property we are looking at has only been empty for 5 months!!

With any reduced rate VAT remember you pay the VAT on materials to the contractor and then get it back when then do their VAT return. So you need the m

With any reduced rate VAT remember you pay the VAT on materials to the contractor and then get it back when then do their VAT return. So you need the money to cover it upfront!! (Though it does all come out in the wash).