VAT by project type

Which rate applies depends on what you are building.

Twenty per cent is the default, not the rule. New homes, many conversions and long-empty properties carry a lower rate when their conditions are met. Find your project below.

A new-build brick house under construction with scaffolding
0%

New build

Building a new home is zero rated, labour and building materials together.

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A former office floor being divided into apartments
5% or 0%

Conversions

Most conversions that create or change homes are 5%, labour and building materials together.

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A Victorian office building being converted into apartments
5%

Commercial to residential

Turning an office, shop or pub into homes is 5% on the contractor's work and materials.

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A large Victorian villa divided into flats
5%

House into flats

Splitting a house into flats, or merging flats into a house, is 5% where the number of dwellings changes.

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A timber barn converted into a home in the Kent countryside
5%

Barn conversions

A contractor converting a barn into a home charges 5% on labour and building materials.

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A Victorian terraced house with a builder’s van outside
5%

HMO conversions

Converting a house or other building into an HMO can be 5% on labour and building materials.

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An empty Edwardian house awaiting renovation
5%

Empty property renovation

Renovating a home that has been empty for two years is 5%, if you can prove the two years.

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A listed Georgian townhouse with restoration scaffolding
20%, with exceptions

Listed buildings

Alterations and repairs to listed buildings are 20%. Listing itself gives no VAT relief.

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Solar panels being fitted to the roof of a home
0% until 2027

Energy-saving materials

Installing solar panels, heat pumps, insulation and batteries in a home is 0% until 31 March 2027.

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An access ramp leading to the front door of a bungalow
0%

Disabled adaptations

Ramps, wider doorways, adapted bathrooms, lifts and alarm systems at a disabled person's home are 0%.

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A modern purpose-built care home
0% or 5%

Care, student and charity buildings

New care homes, student accommodation and charity buildings can be 0%, and conversions 5%, with a certificate.

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A high street building with a shop below and flats above
Apportioned

Mixed use and apportionment

Where only part of a building or job qualifies, the price is split and each part takes its own rate.

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A rear extension under construction on a semi-detached house
20%

Extensions and refurbishment

Extensions, loft conversions and work on a home you live in are 20%, with a few genuine exceptions.

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Not sure where yours fits?

Start with one count.

If the number of homes in the building is changing, a route to the 5% rate opens whether or not the property was ever empty. It is the question that most often finds a saving nobody was looking for.

How conversions qualify

Try it

Homes in the building now

1

Homes when the work is done

4

The number changes: 1 becomes 4. That opens a route to the 5% rate that does not depend on the property having been empty. Worth a proper look.

Next step

Send us the quote. We’ll tell you whether there’s anything to save.

Upload your builder’s quote or tender. We look at the project and the pricing and tell you whether a lower rate is worth pursuing, before you commit to anything.

  • Fixed fee, agreed up front
  • Every rate tied to the legislation
  • We'll tell you if it's 20%
Send your quote Contact us