Are you renovating residential properties?

Are you renovating residential properties that have been empty for at least two years?

This may be good news for you.

HMRC have just announced that new rules come into force on 1 January 2008 which apply the reduced rate of VAT (5%) to this work. This is an change to the existing rules which allowed the reduced rate to apply to the renovation of a building that had been empty for at least three years.

If you are currently renovating a property that falls within this two year limit and you have the evidence to show that it was empty for at least two years, you can get the reduced rate on work being done on or after 1 January 2008.

You can find more information in Revenue & Customs Brief 74/07. You can get a copy from the HMRC website.

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