VCONST07530 - Reduced-rating the renovation or alteration of empty residential premises: certificates: buildings used together on the same site

The purpose of paragraph 4A(2) is to allow a collection of buildings on the same site that are renovated at the same time to benefit from the reduced rate provided that they are used together solely for a relevant residential purpose. This rule exists for the same reason as explained at VCONST07340.

In some circumstances it may be uneconomic to renovate the whole of the original unit at the same time. Paragraph 4A(2) allows parts of the original unit to be renovated at the reduced rate provided that those parts together form their own unit that will be used solely for a relevant residential purpose.

We accept that renovations occur ‘at the same time’ when a rolling programme takes place, provided there is no gap in time between moving from one building to the next. Later renovations of the remaining buildings do not qualify for the reduced rate unless it can be shown that they form their own unit.