VAT legislation relating to construction and property transactions has evolved into a highly complex system, subject to constant changes made by HM Revenue & Customs to counter avoidance, and the decisions of VAT Tribunals 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 so that the exemption is waived will enable a vendor or landlord to recover input VAT that has been incurred.

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.