VAT @ 5% on rennovations? please help - going mad!

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Hello

Can someone please help.

A family member who works for HMRC has told us that because the property we are renovating has been empty for more than two years (it has), SOME of the work is liable at 5% VAT rather than 20%. Our building company agreed with this but told us the safest thing is to get a VAT accountant to sign off, in advance, the work that was eligible.

Family member is not in this person.

We've just spoken to a VAT Accountant who said that he wouldn't do it because our planning permission was submitted before the two years was up (we submitted plans within about 18 months of the property being empty. Since then (another ten months) we have been trying to save/get quotes etc etc.

So the property has been empty for nearly three years.

Can anyone advise as to whether we are eligible? It makes a huge difference to us.

Thank you.

Anyone?

Have a look here

There’s a regular poster on houzz uk who did this. Annoyingly I can’t remember their name but they did a big renovation in S London. I recall he said it was complicated to get the reduction and he had to be very organised about how he ordered stuff, but it did work.

www.gov.uk/guidance/buildings-and-construction-vat-notice-708#section8

I think you’ll qualify - see para 8.3.2, you’ll need to get all the evidence together though that is has been empty, and previously used as a ‘dwelling’

Thanks. Will look at the Houzz link.

Any MNers that have done this?

Just remembered the Houzzer who did this - he’s called Resh. Look him up on Houzz and I’m sure he won’t mind explaining, he’s a regular poster there.

Brilliant - thank you.

We have just done this. Our builders have only charged us 5% VAT so we haven't had to deal direct with HMRC. We have bought a few things ourselves and explained the situation to the companies we've bought from. Some are happy to reduce VAT to 5%, others not so we will claim back the 15% from HMRC later. It's definitely worth doing if you can, saved us so much.

Hi sorry to jump on your thread. I am in a similar situation. I bought a property that had been empty for 20 months when we completed on the property. We obtained confirmation from the sellers solicitor that it was empty for the 20 months prior to purchase . We couldn't get an empty property certificate as the seller never informed council it was empty. I do have written confirmation from sellers solicitors letter though . Not sure where I stand with regards reduced vat for renovation. Its now classed as long term empty by the council whilst I sort out architect /builders. Hope I still can achieve the vat reduced renovation rates? Can anyone shed light on this ? What other proof must I provide?

The issue I am having is 'proof'. I can supply council tax letters to my builders, but i have read that it's best to be watertight and have a VAT certificate so that HMRC can't quibble at a later date (as the bill will eventually be passed back to you).

My local authority no longer has an empty property officer and I can't work out how you get the certificate. The first VAT person I spoke to was inexperienced and nervy and said he would charge £2K for it (if he was prepared to supply it).