5% VAT rate on renovation - specialist needed

[tom_loughlin]

Evening all,

I'm after some help if possible - does anyone know who to speak to who would know what hoops I need to jump through to get some paperwork saying a 5% VAT rate is applicable for the renovation of my place?

I've done similar with a chapel conversion previously, but Im really struggling as the current house doesn't seem such a black and white case, and I'm struggling finding any info.

I have spoken to the council, who are unaware it wasnt lived in for the two years prior to my ownership.

In short, it was a very elderly couples 'holiday home'. They lived an hour away and only came once a month to cut the grass and haven't stayed over in the last 10 years of their ownership. Unfortunalely they are not in the best of health, so I don't want to be bothering them.

If anyone can suggest someone to speak to, I would be most grateful.

Thanks for now

Tom

[YarisSi]

Have you spoken to HMRC or looked at the guidance to see what you could use as evidence? It has been a long time since I have done this.

Could you use the water company meter readings (or gas/electricity) to help evidence it was empty?

[anonymous-user]

Surely you're going to struggle with that argument because if the property was truly "uninhabitable" it would almost certainly have been removed from Council Tax. My understanding is a house must, amongst other things, be cleared of furniture to tick that box.

The VAT test is slightly different - "not lived in for at least 2 years" - but a house can be lived in even if it's not occupied overnight.

https://www.gov.uk/guidance/buildings-and-construc...

8.3.2 Proof that the premises has been empty for 2 years

"If you reduced-rated your supply, you may be required to show that the building has not been lived in during the 2 years immediately before you start your work. Proof of such can be obtained from Electoral Roll and Council Tax records, utilities companies, Empty Property Officers in local authorities, or any other source that can be considered reliable.
"If you hold a letter from an Empty Property Officer certifying that the property has not been lived in for 2 years, you do not need any other evidence. If an Empty Property Officer is unsure about when a property was last lived in, they should write with a best estimate. We may then call for other supporting evidence."

[springfan62]

The only time I have used that 5% exemption I obtained written evidence from the local authority of when it was previously occupied.
If the previous owners were paying council tax I think you will struggle to demonstrate it wasn't in use.

[dsl2]

Speak to Andrew at Self build VAT, can't recommend him highly enough.

He handled my new build Vat reclaim superbly, even advised me to take HMRC to court when they refused one part of my claim on the Oak framed garage for £7,000 because they were wrong.

Needless to say he did all the paperwork & represented me in court, open & shut case the judges were laughing at the HMRC representative as he made them look stupid, 5 mins deliberation & they were back with the verdict in my favour, money was returned a few weeks later.

His number - 01646 687599

[tom_loughlin]

All,

Thank you for your advice - I realise I'm probably a bit of an oddball case, which is really why I asked the question. I guess it is down to interpretation of 'lived in'. Yes council tax was paid, but the electricity usage would have been next to nothing. (No gas/water/drainage rates as it is in the middle of nowhere and on a private water supply) so it is down to me to argue my corner.

DSL2, I will certainly be getting in touch with Andrew - your experience with him is exactly what I hoped for when I created this thread.

Thank you all

Tom