Rates at a glance
| Work or supply | Rate |
|---|---|
| Contractor's conversion work turning a barn into a dwelling | 5% |
| Building materials supplied and fitted by the contractor | 5% |
| A developer's first sale or long lease of the converted barn | 0% |
| Building materials you buy yourself, without fitting | 20% |
| Carpets, appliances and fitted furniture other than kitchens | 20% |
| Architects', structural engineers' and surveyors' fees | 20% |
The rate for your project depends on its facts. Each line of a quote is rated on its own.
Does yours qualify?
The headline tests. All of them have to hold.
- The barn is non-residential before the work and contains no dwelling.
- After the work it contains at least one self-contained dwelling.
- Any planning consent and building control approval the conversion needs is held.
Plus 3 further points we test. These are the ones that are easy to miss, and any one of them can change the answer. A qualification report works through every one against your documents.
About the qualification reportWhere projects go wrong
- A builder charging 20% by default. The extra VAT cannot be reclaimed from HMRC, so the builder has to correct the invoice.
- Treating excluded items as building materials on the builder's invoice. Carpets and appliances are 20% in a 5% conversion.
We check for 4 more pitfalls on every project of this kind. Most only come to light once the work has been invoiced, which is the expensive time to find them.
What it can be worth
A stone barn converted into a four-bedroom home
A contractor quotes £360,000 before VAT to convert a redundant stone barn into a single house. The quote applies 20% to the whole job.
| Item | Net | Rate | VAT |
|---|---|---|---|
| Underpinning, structural frame and floor slab | £78,000 | 5% | £3,900 |
| Roof structure and coverings | £64,000 | 5% | £3,200 |
| Windows, doors and glazed openings | £46,000 | 5% | £2,300 |
| Insulation, internal walls and plastering | £52,000 | 5% | £2,600 |
| Plumbing, heating and electrics | £58,000 | 5% | £2,900 |
| Fitted kitchen units and worktops | £24,000 | 5% | £1,200 |
| Drainage and service connections | £21,000 | 5% | £1,050 |
| Kitchen appliances | £9,000 | 20% | £1,800 |
| Carpets | £8,000 | 20% | £1,600 |
| Total | £360,000 | £20,550 |
- VAT if quoted at 20% throughout
- £72,000
- VAT rated line by line
- £20,550
- Difference
- £51,450
An example to show how the rates fall across a typical barn conversion. It is not a figure for your project.
How we help with barn conversions
We establish whether your barn conversion meets the tests for the reduced rate, and how the VAT is dealt with in your position, as a developer or as someone converting a home for yourself. You get a clear answer on whether it qualifies, with the reasoning written down for your builder and your accountant.
A line-by-line analysis then gives you the right rate for every part of the quote and a letter for your builder setting out what to charge. It is best done before the contract is signed, while the quote can still change. We do not submit claims to HMRC, but our guide to self-build VAT reclaims explains the scheme. To start, send us your quote.
Questions
What is the VAT on a barn conversion?
A VAT-registered contractor converting a barn into a dwelling charges 5% on the work and on the building materials they supply and fit, where the conditions are met. Carpets, appliances and fitted furniture other than kitchens are 20%. So are architects' and engineers' fees.
Is a barn conversion zero rated?
Not the building work, unless the customer is a relevant housing association. The builder's rate is 5%. A developer's first sale of the converted barn is zero rated, and a person converting a barn into their own home can claim VAT back afterwards under the DIY housebuilders scheme.
Can I claim VAT back on a barn conversion?
If you are converting the barn into your own home, the DIY housebuilders scheme allows one claim to HMRC, made within six months of completion. It does not cover professional fees, hire or excluded items. The claim is yours to submit, but we can tell you what will and will not qualify before you spend the money.
Based on the Value Added Tax Act 1994 and HMRC's published guidance. This page explains how the rules work in general. It is not advice on your project, and no rate applies until the facts have been analysed.
