Renovating a property often entails significant expenses, and finding ways to save money can be immensely beneficial for bolstering your renovation budget. Whether you’re constructing, purchasing, or renovating a home, there exist lesser-known avenues to reduce costs associated with VAT and stamp duty.
Yahoo Finance spoke to top property experts about how you can trim down your VAT and stamp duty expenses in the realm of property.
Save VAT by buying an empty house
If you buy a house that’s been empty for two years or longer before you start renovations, any work that you do will be charged at a 5% rate of VAT. Don’t assume that you will always get this VAT reduction, however. It’s likely that you will need to provide evidence for the property being empty. “You may be asked to prove this by providing electoral roll or council tax records,” says Ashley Wilsdon at Middleton Advisors. “VAT is a fairly complex subject matter, and we would usually ask a specialist to advise our clients on any properties that may qualify given the intricacies that the HMRC operate around this.”
Save VAT on mobility aids and energy saving
When certain mobility aids, such as grab rails and ramps, are installed in a home for someone over the age of 60, they are charged at a VAT rate of 5%.
“If one is installing mobility aids for the elderly for use in domestic accommodation the reduced rate of 5% applies,” says Ed Sainter at Middleton Advisors. “This rate also applies if energy saving materials are being installed and grant-funded heating system measure too.”
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