Work on existing buildings presents a challenge as it could be reduced-rated, for example, the conversion of a commercial property to a dwelling or you may be carrying out standard- rated repairs. Renovation work can be either reduced rated because the property has been empty for 2 years, or more, or standard rated if it is occupied.
Further consideration is required when constructing communal residential buildings such as children’s homes, residential care homes, hospices, school boarding houses, student accommodation, monasteries, and nunneries. The VAT treatment of construction work may also depend on who the customer is. Is the work being carried out for a charity? Or a disabled person?