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.
New build
Building a new home is zero rated, labour and building materials together.
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Conversions
Most conversions that create or change homes are 5%, labour and building materials together.
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Commercial to residential
Turning an office, shop or pub into homes is 5% on the contractor's work and materials.
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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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Barn conversions
A contractor converting a barn into a home charges 5% on labour and building materials.
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HMO conversions
Converting a house or other building into an HMO can be 5% on labour and building materials.
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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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Listed buildings
Alterations and repairs to listed buildings are 20%. Listing itself gives no VAT relief.
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Energy-saving materials
Installing solar panels, heat pumps, insulation and batteries in a home is 0% until 31 March 2027.
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Disabled adaptations
Ramps, wider doorways, adapted bathrooms, lifts and alarm systems at a disabled person's home are 0%.
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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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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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Extensions and refurbishment
Extensions, loft conversions and work on a home you live in are 20%, with a few genuine exceptions.
Learn moreNot 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.
Homes in the building now
Homes when the work is done
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%