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Posted Fri, 06 Dec 2024 17:49:22 GMT by David Clarke
I take it that the requirement that work does not commence before the property has been empty for 2 years relates to VAT charged by any single contractor on a single contract. For the avoidance of doubt, please clarify whether carrying out any of the following during those two years would make such a property ineligible for reduced rate VAT once it has been unoccupied for 2 years? Work carried out by the owner as DIY. Work carried out by another contractor as a separate and unrelated work package. Work carried out by the same contractor as a separate and unrelated work package.
Posted Tue, 10 Dec 2024 09:07:36 GMT by HMRC Admin 19 Response
Hi,
The guidance is clear in that any work carried out to the building before the property has been empty for 2 years would be standard rated.
However once the property has been empty for 2 years, then as long as all the conditions are met in the guidance below, then the majority of the work can be done at the reduced rate of VAT:
Reduced rating the renovation or alteration of empty residential premises
Thank you.

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