Shropshire Council

Empty property renovation VAT reductions

VAT discounts are currently available for the renovation of empty properties. It's advisable to apply for these discounts before starting any work on a property to ensure you can claim it. You'll need to evidence the length of time a property has been empty in order to qualify for these discounts. Contact the Community Protection Team, and we can provide you with a letter to confirm the length of time a property has been empty according to our records.

There are currently two levels of discount, each with differing eligibility criteria...

Two-year empty discount

If the property has been empty for two years immediately before works commence, and will only be used for residential purposes once renovated, you may be eligible for a reduced rate of VAT at 5%. The requirements and eligibility criteria for this discount are detailed at HMRC. It's important to ensure that your builders understand the concession and the details involved to make certain you're invoiced correctly.

Ten-year empty discount

If the property has been empty for more than ten years immediately before works commence, and will only be used for residential purposes by yourself or your family once renovated, you may be eligible for zero-rated VAT. The requirements and eligibility criteria for this discount are detailed at HMRC. It's advised that your builder applies the 5% VAT rate in the first instance, as in the above two-year empty discount, and then you complete a conversion claim form to recoup the 5% VAT you've paid.

You can find specific details on VAT reductions from VAT Notice 708: Buildings and Construction, Section 8.