Worthing Borough Council

VAT on Empty Homes

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01273 263034

jemma.seaton@adur-worthing.gov.uk

There are some tax breaks available for refurbishing empty properties and flats above shops.

• There is a reduction in VAT from 20% to 5% on the costs of renovating a single property that has been empty for two years.
• Zero rating on the sale of renovated homes that have not been used for residential purposes for at least 10 years.
• The rate has also been cut on other projects including the costs of converting housing into flats or bed-sits.

How the VAT Reliefs Affect Empty Properties

• A builder can charge a reduced 5% rate of VAT on work to renovate a property that has been empty for two years or more.
• A developer or house owner can claim back all VAT charged on the renovation of a property that has been empty for at least 10 years once the house or flat is sold.
• Or If the house owner decides to live in the property (as private residential use), they can make a claim for the VAT under the DIY Builders refund scheme available from Customs and Excise.
• There is no VAT to pay on the sale of renovated properties that have not been used for residential purposes for at least 10 years.

Help From Your Local Authority Enabling Officer

Worthing Borough Council’s Empty Properties Officer can help with:

• Confirming that a property has been empty for 10 years; or
• by confirming that a building has been empty for two years.
• We can confirm this with an official letter, which is sent to the developer or house owner. This can be used as evidence that the building has been empty should Customs need to check.

For further information please contact HM Revenues and Customs National Advice Service on 0845 010 9000 or visit the HM Revenues and Customs website 

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