VAT relief has been introduced in various budgets. The measures include:
-
A reduction in VAT from 15% to 5% on costs of renovating single house dwellings that have been empty for two years (reduced from 3 years to 2 years in March 2008 and VAT reduction to 15% from December 2008)
-
Zero rating on the sale on renovated buildings that have not been used for residential purposes for at least 10 years.
How does this affect empty properties?
-
A builder can charge a reduced 5% rate of VAT on work to renovate a house that has been empty for 2 years or more
-
A developer or house owner can claim back all VAT charged on the renovation of a building that has been empty for 10 years or more, once the dwelling is sold. If the house owner retains the property for private residential use, they can make a claim for the VAT under the DIY Builders Refund Scheme.
How your Local Authority can help you
Your Local Authority can assist you in claiming a VAT relief by confirming the length of time the property has been empty. This information can be used as evidence that the building has been empty
More information
For more information on VAT relief, please click here