VCONST07100 - Reduced-rating the renovation or alteration of empty residential premises: scope

The following works are eligible for a reduced rate of VAT of 5 per cent:

• the renovation or alteration to a ‘single household dwelling’
• the renovation or alteration of a building that will be used solely for a ‘relevant residential purpose’
• the renovation or alteration of a multiple occupancy dwelling (such as bed-sits)

provided that the premises have not been lived in for at least two years when the work starts.

Note: Prior to 1 January 2008, in order to be eligible for the reduced rate, the building in question had not to have been lived in for three years or more.