HM Revenue and Customs Brief 74/07
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Issued 14 December 2007
VAT: reduced rate on residential renovations and alterations
With effect from 1 January 2008, renovations and alterations to residential
properties that have been empty for at least 2 years will be eligible for a
reduced VAT rate of 5%.
This is a change to the current law, which provides for a 5% reduced VAT rate
on works of renovation and alteration to residential properties that have been
empty for at least 3 years.
Contractors who are renovating residential properties that have been empty
for at least 2 years as at 1 January 2008 should account for VAT at 5% on those
supplies that take place on or after that date. Contractors should ensure they
are fully aware of the tax point rules (see Notice 700 - The VAT Guide para 14)
when determining the time of their supplies.
Further information on this reduced rate can be found in Section 8 of our Public
Notice 708 – VAT: Buildings and construction, available from the National Advice
Service 0845 010 9000 or downloadable from our website at www.hmrc.gov.uk.
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Article Published/Sorted/Amended on Scopulus 2007-12-14 12:49:22 in Tax Articles