VAT reduction for renovations

If a residential property has remained empty for a period of 2 or more years, the owner may qualify for a reduced VAT rate of 5% on the majority of the expenditure involved in the renovation work.  The Council can provide written confirmation that will allow the owner to claim the reduced VAT rate.

If the owner uses a VAT registered builder to undertake the work the VAT they charge on the works will be at the lower rate, with the builder responsible for claiming the difference from HMRC.

For further information or to request a letter confirming that the property has been empty for the qualifying period please contact Housing Needs & Development on 01432 261905 or email housingdevelopment@herefordshire.gov.uk.