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    Converting existing premises by increasing the number of dwellings within the building

    VAT treatment5%

    What this means for your business

    Charging VAT
    VAT is charged, but at the reduced rate (5%).
    Reclaiming VAT
    VAT paid on costs related to making this supply can normally be reclaimed in full as input tax.

    Official guidanceVAT Notice 708↗ (opens in a new tab)

    Related items in Building and construction

    • Construction and first freehold or long leasehold sale of a new building for a relevant charitable purpose0%
    • Construction and first freehold or long leasehold sale of a new building for relevant residential purposes0%
    • Construction and first freehold or long leasehold sale of new domestic buildings0%
    • First freehold or long leasehold sale of a commercial building converted into a dwelling or dwellings0%
    • First freehold or long leasehold sale of buildings converted for relevant charitable purposes0%
    • First freehold or long leasehold sale of buildings converted for relevant residential purposes0%
    • Renovating a dwelling that has been empty for at least 2 years5%
    • Substantial reconstructions to protected buildings that are buildings used as a dwelling, for a relevant residential purpose or for a relevant charitable purpose0%
    • The installation of a bathroom or lavatory, constructing ramps and widening doorways or passageways for disabled people in their own home0%

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