VAT

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Bogart
Posts: 334
Joined: Tue 11th Oct, 2016 8:33 pm
Location: Norfolk

VAT

Post by Bogart » Fri 26th Jun, 2020 9:07 am

As some of you may recall I am in the process of deciding on replacement glazing to all of the property in one form or another, then I came across this.

' Do – know your rights on VAT! Energy performance improvement work within a renovation project triggers only 5% VAT. '

Is this correct? If so news to me.

If so I would then ask how does one define a renovation project?

Flyfisher
Posts: 9813
Joined: Sat 14th Oct, 2006 9:51 pm
Location: Norfolk, UK

Re: VAT

Post by Flyfisher » Fri 26th Jun, 2020 10:30 am

If it’s anything like the old rules of zero-rated VAT for listed building alterations it won’t apply to DIY works and would also have to be agreed with appropriate contractors before invoicing because there was no refund mechanism. I would guess that the appropriate contractors (DG fitters, insulation installers etc) would already know about this concession and would only include 5% VAT on their invoices. I would also guess that replacing all the windows in a property would qualify as ‘renovation’.

paulc
Posts: 344
Joined: Sat 22nd Oct, 2016 7:05 pm

Re: VAT

Post by paulc » Fri 26th Jun, 2020 10:36 am

Bogart wrote:
Fri 26th Jun, 2020 9:07 am
If so I would then ask how does one define a renovation project?
https://www.homebuilding.co.uk/advice/v ... -new-build
A renovation is brining a property back in to use that has not been occupied for 10 years or more. Or the conversion of a building for residential use (i.e. a church in to a home).
Whilst you can reclaim the VAT on a large amount of materials and labour, there are some exclusions such as bathroom worktops, plant hire, barbed wire, and so on...

Bogart
Posts: 334
Joined: Tue 11th Oct, 2016 8:33 pm
Location: Norfolk

Re: VAT

Post by Bogart » Fri 26th Jun, 2020 11:38 am

It is the 10 year thing that seems the stumbling block. Refurbishment/renovation all word speak. I will follow it up especially with the site I got the info from.

malcolm
Posts: 1062
Joined: Wed 18th Sep, 2013 6:21 pm
Location: Bedford UK

Re: VAT

Post by malcolm » Sat 27th Jun, 2020 3:02 pm

I had a look into the VAT reclaim on conversions. Turned out you can't reclaim VAT if some part of the building was already residential (like the living accommodation above a pub for a completely random example). Would be interested to know what you find out. Generally these things seem to be quoted by our leaders to make themselves look good but in practice seem vary difficult to operate.

Flyfisher
Posts: 9813
Joined: Sat 14th Oct, 2006 9:51 pm
Location: Norfolk, UK

Re: VAT

Post by Flyfisher » Sat 27th Jun, 2020 7:53 pm

Not always difficult. The now-discontinued zero-rating of VAT on listed building alterations was fairly straightforward. I was able to save a significant amount on two lots of building works by contractors. The only real issue was to confirm that they would zero-rate their invoices because it was not possible to reclaim any VAT that had already been paid. All I did was to give the contractors a copy of the LBC consent for their files in case of a VAT audit. But those days have now gone.

I suspect the VAT rate reduction for 'refurbishment' is to encourage empty/uninhabitable properties to be brought back into use to help with the housing shortage, in the same way that 200% council tax is now levied on empty properties by some councils.

Bogart
Posts: 334
Joined: Tue 11th Oct, 2016 8:33 pm
Location: Norfolk

Re: VAT

Post by Bogart » Fri 17th Jul, 2020 1:55 pm

As some of you may recall I am in the process of replacing and or adding to my current windows with DG or secondary. Have had a quote from one of the secondary people who have quoted me at 5% VAT.
My preferred supplier of the DG units will not do that Hmmm
Anyway am going to wait until we get full details of the money Rishi is going to knock out for energy saving work, is all a bit vague at present.

skybloo1
Posts: 2
Joined: Mon 24th Sep, 2018 11:07 pm

Re: VAT

Post by skybloo1 » Thu 20th Aug, 2020 10:54 am

We have just had 5% VAT applied to the bill for laying a limecrete floor as our property has been unoccupied for over two years now. A scan of our Council Tax bill was sufficient evidence (as we are now paying double!).

BTW I know we should have tried to lay this ourselves but we just didn't feel confident we would get it right and we only intend to do this once... after digging out 40 m sq of soil and laying RFG my wife and I are happy to let the professions step in :wink:

Willow&water
Posts: 3
Joined: Sun 30th Aug, 2020 1:18 am

Re: VAT

Post by Willow&water » Sun 30th Aug, 2020 10:26 am

Hi I’m new to the forum and in the midst of buying a grade 2 listed cob and part thatch property which will have been empty 2 years in February.

I hope to take advantage of the 5% VAT, RHI, and green deal. Does anyone know if it is possible to live in a caravan on site without losing the VAT reduction if we don’t live in or start work on the dwelling?

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