Reduced VAT (5%) Renovation: 2-year rule

The property has been emptied for 2 years from previous owner as he passed away. After my purchase, as a new owner recently (about a month) and have not moved in yet do I still get the reduced VAT? If yes, in this case what evidence I can use to prove that given I have no permission to obtain any previous documents/records as those belongs to previous owner? I contacted my council but they do not have a Empty Property Officer. Please let me know. Thank you.

Hi Variable8 Sze,
Please see the guidance below:
8. Reduced rating the renovation or alteration of empty residential premises
The builder will need to be satisfied that the property has been empty for 2 years or more in order to charge the reduced rate of VAT.
We do not specify the evidence which must be kept by the builder but it does need to be reliable evidence.
Please see the guidance as above, specifically 8.3.2.
Thank you.

Hi, Thanks for your response. I have double checked 8.3.2 and have contacted council and utility provider. Unfortunately both of them are unable to provide me any record due to the fact that I was not the bill owner. Can you provide some examples of acceptable source of evidence? What information need to be shown on the evidence? Take utility bill as an example, is it to show the energy usage is minimal? Thanks.

 

Hi. HMRC doesn't state an exaustive list of evidence which can be provided to the builder . The guidance in Notice 708 section 8.3.2 ststes: If you reduced-rated your supply, you may be required to show that the building has not been lived in during the 2 years immediately before you start your work. Proof of such can be obtained from Electoral Roll and Council Tax records, utilities companies, Empty Property Officers in local authorities, or any other source that can be considered reliable. An example of another reliable source could be a letter drawn up by a solicitor. However the responsibility is with the builder to be satisfied that the evidence provided is reliable enough to allow them to reduce rate the work. Thank you .