VAT on Construction and Property

The VAT legislation relating to construction projects and property transactions has
evolved into a highly complex system and a sound knowledge of the interaction and
impact of numerous rules is required to avoid the risk of costly errors. The law has
been subject to many changes made by HM Revenue & Customs to counter
avoidance and must be interpreted in the light of the decisions of the VAT Tribunal
and the European Court of Justice.

Residential and some charitable buildings benefit from zero-rating and a reduced
rate can apply to certain renovation and conversion projects. The supply of other
construction services will generally be standard rated.

Commercial property can be exempt from VAT or standard rated. The decision to
opt to tax the property will enable a vendor or landlord to recover input VAT. In other
circumstances, it is the use or intended use of the property that will determine the
extent to which input VAT may be reclaimed.

We have the ability to provide the full range of advice on any issue relating to VAT.

For more information please contact  Andrew Green.