This subject can be difficult to navigate. If you want to access the concessionary 5% rate, you do have to employ a contractor on a supply-and-fix basis. This builder, who needs to be VAT registered in the first place, will require evidence from you that the house has been empty for a continuous two year period (to prove that the property qualifies for the lower rate). This is not easy, as the council is unlikely to help you with a certificate to say as much. Instead it will be down to you to mount your evidence as best you can. Utility bills are helpful, as are sworn affidavits from neighbours and the postman etc. Section 8.3.2 of VAT Notice 708 suggests using the electoral roll and council tax records as well as local knowledge. A letter from the council’s empty property officer seems to be the best evidence available so that may be your first port of call.

However, none of this matters if you are only seeking to buy materials and intend to use your own labour. The purchase of goods from a merchant or other type of supplier will always attract VAT at the full 20% for renovations. The only way for this to be discounted to the concessionary rate is for a VAT registered builder to buy the goods, pay the tax themselves and then subsequently supply-and-fix them for you at the reduced figure of 5%. They, as a registered entity, then need to account for the difference when they submit their own VAT return – for which they will need the documentary evidence from you that proves the house has been unoccupied. In summary, those not using a qualifying builder will be unable to exploit this concession.

Tim Doherty, Build It expert and MD at Dobanti Chartered Surveyors