VAT: Reduced Rate on Residential Renovations

T.C.
T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
in General accounting discussion
From 1st January 2008, renovation and alterations to residential properties that have been empty for at least 2 years are eligible for a reduced VAT rate of 5%. Obviously if a builder does the work as a contractor then he only charges 5% instead of 15.5%. However, if a property developer does the work for himself, with a view to re-sell the property, can he reclaim 5% of the VAT he incurs on materials? (normally he would not be able to reclaim any).

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  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
    I know this is a confusing question, but that is an even more confusing answer! :001_unsure:

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