Only 5% VAT on Home Renovations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renovations

O’Mac Construction offer a reduced 5% Vat rate on all renovations and alterations if the property has been unoccupied for 2 years or more giving our clients an average saving of  £12,000.00. Terms and conditions apply, evidence on non occupation must be provided.

The following are examples of acceptable evidence of non-occupation:
• electoral roll data
• council tax data
• information from utility companies
• evidence from a local authority’s Empty Property Officer. (Evidence from this source alone may be sufficient.) Where an Empty Property Officer is
unsure, HM Revenue & Customs may accept a best estimate and call for other supporting evidence.

For further information relating to VAT on renovations please click on the links below

http://www.hmrc.gov.uk/briefs/vat/brief9209.htm

Conversions

Where the building is a conversion, it must be of a non-residential building. That means a building that has either never been lived in, or hasn't been lived in for the last ten years - not even on an occasional basis as a second home. Illegal occupation by squatters doesn't count, however, and you are allowed to live in the property while the work's being done, as long you move in after the work has started.
There are strict definitions for what constitutes a suitable residential conversion.

If you buy a converted house from a property developer, you will not be charged VAT. This is because the sale of the house to you will be what we
call zero-rated. This allows the developer to recover the VAT paid on building materials during the build from us.
However if you convert the house yourself, you will not be able to benefit from the zero-rating. This Scheme puts you in a similar position to a person who buys a zero-rated converted property from a property developer. You may also recover VAT that you have paid on the services of conversion

For further information relating to VAT please click on the links below

http://www.hmrc.gov.uk/vat/sectors/consumers/new-home.htm

Restrictions

Different restrictions apply to each individual project, the above text is for guidance only, please click the link below for further information

www.hmrc.gov.uk