VAT savings

VAT (Value Added Tax) for most work by contractors on houses is charged at the standard rate of 20 per cent.

There are however some exemptions. If you are renovating an empty house or flat that has not been lived in for two years, and you use a VAT-registered contractor you could be eligible for a reduced rate of 5 per cent VAT. This means a potential saving on lots of your repairs costs.

Full details can be found on HMRC (HM Revenue & Customs) website at GOV.UK - Buildings and construction (VAT Notice 708) Section 8. Reduced rating the renovation or alteration of empty residential premises

Your contractor needs to be able to show HMRC evidence that the property has been empty for two years. Assuming you are the person liable for Council Tax, Anglia Revenues Partnership (ARP) who administers Council Tax accounts on behalf of West Suffolk Council, can provide a letter documenting the last date of occupation of the property.