What you need to know: VAT and property conversions

2 Oct 2024

Rickie Lowery CTA, tax adviser at Croner-i, explains the circumstances where preferential VAT treatment may be available when converting property

While construction work is generally standard rated by default, under certain circumstances the construction or renovation/conversion of a property can be subject to preferential VAT treatment. It is the latter of these scenarios that will be the focus of this article.

Note that a ‘building’ can also include ‘part of a building’ and that the services of architects, surveyors, etc, are always standard rated.

All references are to Value Added Tax Act 1994 (VATA 1994) unless otherwise stated.