The construction of a new dwelling can be zero-rated for VAT purposes. 

Works to convert an existing building, or renovate an empty dwelling might be chargeable with the reduced rate of 5% VAT.  

Or is the building an annexe?

  • So should VAT be charged or not?
  • And what if the building is used as a residential care home or hospice?

Special rules apply and construction services may be zero-rated – and, similarly, there are special rules if the building is to be used for charitable purposes. We have advised the budget-holders of many construction projects how the project might be structured to take advantage of the various VAT reliefs.

After all, no-one wants to pay more tax than they need to!

If you or your clients require VAT advice,

Please Contact Us