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HM Revenue and Customs Brief 74/07

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HM Revenue and Customs -Tax Authorities

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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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Crown Copyright 2007.

A licence is need to reproduce this article and has been republished for educational / informational purposes only. Article reproduced by permission of HM Revenue & Customs under the terms of a Click-Use Licence. Tax briefs are updated regularly and may be out of date at time of reading.



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Article Published/Sorted/Amended on Scopulus 2007-12-14 12:49:22 in Tax Articles

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