Do empty properties benefit from reduced VAT rate on building works?

Do empty properties benefit from reduced VAT rate on building works?

9:24 AM, 21st February 2024, About 9 months ago 11

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Hello, my question is about HMRC VAT Notice 708 and specifically section 8 empty properties. Properties empty for 2 years benefit from a reduced VAT rate on works. 5% rather than the usual 20%. >> https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708#section8.

I have one property where I am benefitting from this and just found out that a second property I purchased last year will have been empty for 2 years in October this year. I also have a third property which I know has been empty for 2 years but struggle to prove this.

My query is twofold: On the latter one, I have tried to get confirmation from the previous owner (a housing association), utility company and council to confirm the vacancy to no avail, mostly as they don’t want to share information prior to my ownership. I have found old mail in the flat including old utility bills which confirm that no gas has been consumed in the property since Sep 2021. My question is: will the lack of gas consumption be sufficient to prove the vacancy?

How much info/evidence will HMRC look for?

My second query is about the property hitting the 2-year vacancy in October. There is a good chance that by October I will be nearing completion of the extension and refurbishment work on this property. Can I ask my builder to reduce VAT on works billed from October 2024 with invoices prior to this date running at 20% or will all work have to be charged at 20% as the start of refurbishment would have started before October 2024?

Thank you in advance for your insight into this.


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NewYorkie

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11:49 AM, 24th June 2024, About 5 months ago

Reply to the comment left by Bruno at 24/06/2024 - 10:54
Under common sense circumstances, I would meet the 2 year rule. It was unoccupied by the previous owner for the 18 months before she died, I haven't lived in the house, and building is unlikely to start before August, but I had to insure the house from before Exchange last July, have been paying council tax, and have used electricity for various reasons [gas is off].

I am waiting for the council chap to call me back, but am not optimistic.

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