VAT relief on house restoration

Hi Stefano,
If the companies who are supplying the goods also install those goods and all the other conditions are met as per the following guidance then you should be able to benefit from the 5% VAT rate:
Buildings and construction (VAT Notice 708).
Thank you.

Hi there, I have a question on the scope of the works that are covered under this reduced rate. We qualify under the terms of the VAT relief for renovating an empty residential property (Buildings and construction (VAT Notice 708)) and are having a bathroom and kitchen installed alongside other works to our property. The bathroom work involves boxing around bath / shower enclosure, tiling walls and floor, and installing the loo, sink and shower. The kitchen work is to install a pre-made set of kitchen units and appliances and tiling. Do these qualify for the reduced rate? Thanks for your help.

Hi Adam Foyster,
You will only be able to make a claim if you or your family is residing in the property.
If you allow contractors to buy the materials for you, then you will need to provide the evidence to us that you have paid the original supplier yourself. If you cannot show this, then you would not be able to reclaim the VAT on the materials.
Thank you.

Hi Laurie,
Please see the guidance below:
8. Reduced rating the renovation or alteration of empty residential premises.
Thank you.

@HMRC Admin 21, thank you for the quick response.
My interpretation of this guidance is that the bathroom and kitchen work I have outlined is eligible for the reduced rate.
Could you let me know if you disagree?

Hello,
I have been undertaking major works on a renovation to our house for the last 2 years.
Works paused for some months and are due to recommence early next year.
It has been empty for the entire time and we have a letter confirming that Council Tax has not been payable on the house since March 2023 on the basis that it was considered uninhabitable.
That being the case....
(i) If work recommences after March 2025, am I right in thinking that any work after this time could be conducted at a reduced VAT rate from any contractors of 5%?
(ii) Should this Council Tax confirmation be sufficient for any contractor to be satisfied that they should only charge a reduced rate of VAT?
(iii) In the first phase of works, there was considerable insulation added to walls, floors and roof space.
We seem to have been charged 20% for this by the contractor.
Should this not have been at a reduced rate of 5% for insulation?

Hi Laurie,
If all the conditions outlined in Notice 708 section 8 are satisfied, the installation of the bathroom and kitchen can qualify for the reduced VAT rate.
However, for materials to benefit from this reduced rate, they must be classified as building materials, which excludes most electrical appliances.
Please refer to the guidance provided in Buildings and construction (VAT Notice 708) Section 13.
Thank you.
 

Hi Trevor Nunn,
As long as the conditions are met according to the following guidance, most of the work can benefit from the reduced rate of VAT. 
Please also refer to the evidence that can be provided to the builder:
Buildings and construction (VAT Notice 708) Section 8
There are special rules for the installation of energy-saving materials.
Please see guidance at:
Energy-saving materials and heating equipment (VAT Notice 708/6) Section 2
Thank you.