10 May 2007    |    Uncategorized

Residential Renovations and VAT

Nicolson, Chartered Accountants, are reminding those who are renovating houses that they may be eligible to have building works charged at 5%, rather than the full 17.5% rate.

You may wish to draw your builders attention to VAT Notice 708 which has the full detail, but the key points are summarised below:

The supply (is charged at the 5% rate), in the course of the renovation or alteration of qualifying residential premises, of qualifying services related to the renovation or alteration.

The supply of building materials (is charged at the 5% rate)

if the materials are supplied by a person who, in the course of the renovation or alteration of qualifying residential premises, is supplying qualifying services related to the renovation or alteration, and

those services include the incorporation of the materials in the premises concerned or their immediate site.


A qualifying building is one that is a single household dwelling that has not been lived in for the past three years.

The building materials which can be supplied by your builder at 5% include most fittings’ incorporated’ into the building is such a way that its fixing or removal would either require the use of tools, or would result in the need for remedial work to the building, or would result in substantial damage to the good themselves. This can include fitted wardrobes, boilers, storage heaters, flooring (but not carpets), as well as the more usual supplies. You cannot obtain a reduced rate on materials you buy and install yourself, nor on ‘white goods’ or carpets.



The information provided is for general information purposes only.

Legislation and details may have changed since this was written.  The text may not include all matters that are relevant to your individual situation.

You should not make decisions, or refrain from making decisions, without taking further professional advice about your specific circumstances.

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