VAT on commercial to residential project

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    VAT on commercial to residential project

    I'm looking at a deal to convert a couple of disused commercial units in a residential area into houses/apartments and just wanted to get an understanding for the VAT-rate payable.

    Clearly I'd argue that they are 'new builds' and thus zero-rated but I wouldn't be knocking down the structure and starting from stratch, merely extending and converting.

    Has anyone had any experience with this sort of project?

    Thanks in advance

    This website, a specialist on VAT matters , may be able to help you:


      Great link, thanks. Looks like 5%:

      ””Some residential conversions can qualify for VAT at a reduced rating of five per cent, including the supply of ‘qualifying services’ in the course of residential conversions. What’s more, building materials supplied with those services are also reduced rated, although again, materials supplied on their own will be standard rated.

      Residential conversions that can benefit from this reduced rating include:
      • When the developer is converting commercial property to residential property
      • Where there is a change in the number of dwellings, for example, a block of flats being converted into one single residence””


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