VAT change

[alice]

I read this in the Sunday Times Online today...

Doing up that empty property you own is now more attractive, thanks to a Vat change in the prebudget report that passed virtually unnoticed. From January 1, Vat on renovations to homes empty for between two and three years will be slashed to 5%. Currently, that discount onthe normal 17.5% rate appliesonly to work on homes vacant for three years. The fillip is part of a government push to get more of the UK’s 840,000 empty properties inhabited.

I don't know if this is news to the readers here, but thought I'd include it.

Does anyone know what "vacant" is? Would my house qualify, since I'm not living in it while I'm rehabbing it in preparation of my retirement and won't be living in it full time for a couple of years?

alice

 

[Flyfisher]

I would guess that if you're not paying council tax on the property, or have informed the council that the house is not occupied, then the house should qualify. Non-occupancy should also be easier to prove if you are the registered owner but have a main residence elsewhere.

But I wonder if individuals will be able to claim back the 12.5% or if this will only apply to VAT-registered companies.

 

[bower1]

If building a new house individuals can claim back VAT, but only once, so all claims must be made in one go. This may be the same.

 

[Penners]

I wonder if individuals will be able to claim back the 12.5% or if this will only apply to VAT-registered companies.

I'd be prepared to make a modest wager on the answer to that....