Sign up for our FREE monthly newsletter

Don't miss out on amazing content

Part of our vision is to share our expert insight and knowledge to help business owners achieve success. Sign up today!

Client PortalXERO LoginClient Services Brochure
Download our Client Services Brochure

Reduced rate of VAT and Barn Conversions

POSTED BY: Arun Letchumanan

10 August 18

As per VAT Notice 708, a conversion of a barn is a qualifying conversion as a “non-residential building into residential dwelling”. In such circumstances, the VAT liability may be applied at the reduced rate of 5% VAT for any renovation costs incurred for the conversion of a barn into a holiday let. The following conditions must be met for the reduced rate of VAT to apply.

Conditions:

• The property must not have been used as a dwelling before the conversion

• The planned conversion must be to provide “Self-contained living accommodation”

• Statutory planning consent must have been granted and the conversion must be carried out in accordance with the planning consent

Services eligible for reduced rate VAT:

• Main contract (building contractor) work for the fabric of the barn

• Materials supplied by the building contractors with their conversion service

• Provision of water, power, heat or access

• Provision of drainage and other services related to waste disposal

Services not eligible for reduced rate VAT:

• Building material purchased separately i.e. not supplied by the building contractor

• Purchase and installation of carpets and fitted furniture

• Dismantling of scaffolding

• Hire of equipment

• Landscaping

Professional services ; architect, surveyor, consultant and supervisors

ASK ARUN FOR MORE ADVICE AND ASSISTANCE

ASK ARUN - arun@charltonbaker.co.uk

THE LATEST NEWS & BLOG POSTS FROM TEAM CB

Reduced rate of VAT and Barn Conversions

​Don’t miss out on reduced rate VAT!

Errors on VAT returns!

What’s the process for correcting?