Nine VAT reliefs for residential property development: these are the main situations when VAT reliefs apply:
- If you’re constructing new residential properties, the construction may be liable to the zero-rate of VAT.
- If you’re selling new residential properties, the sale may be zero-rated which mean you recover VAT on some or all of your expenditure.
- If you’re purchasing a commercial property to use as or convert into residential properties, you may be able to purchase the property VAT free.
- If you’re converting commercial property into dwellings, you may be entitled to have some or all of the work done at the reduced VAT rate of 5%.
- If you’re changing the number of dwellings in an existing property, you may be able to have some or all of the work done at the reduced rate of 5%.
- If you’re refurbishing dwellings that have been empty for more than 2 years you may be able to have some or all of the work done at the reduced rate of 5%.
- If you’re selling new dwellings that have been converted from non-residential properties, the sale may be zero-rated which means that you can recover VAT on some or all of your expenditure.
- If you’re building a new home for your main dwelling, you may be entitled to claim VAT on certain costs under the DIY Refund Scheme.
- If you’re buying or converting a property for use as your main dwelling, you may be entitled to some the reliefs explained above on the purchase and conversions costs. You may also be entitled to recover VAT paid on conversion work and certain goods under the DIY HomeConverters Refund Scheme.
Want to know more? If you want to save as much money as possible on your property development, then see my new ebook “VATWoman’s Guide to VAT and residential property development” for more information about the subject.