VAT Concessions for Conversions Explained

man looking at paperwork
(Image credit: getty images)

There are several VAT concessions available to converters — but it’s up to you to understand the rules if you want to avoid paying more than necessary.

There are no figures for how much Value Added Tax (VAT) is overpaid by people carrying out conversions (and indeed, renovations and new builds) in the UK. Undoubtedly, it is in the millions of pounds. HMRC is unlikely to have much sympathy though, as this figure is almost certainly dwarfed by the amount of VAT that it fails to collect from the ‘black economy’.

Michael Holmes

Michael is Homebuilding & Renovating's Director of Content, Vice Chair of the self build industry body, the National Custom and Self Build Association (NaCSBA), presenter of multiple property TV shows and author of Renovating for Profit (Ebury). He also runs an architectural and interior design practice, offering design and project management services. He is one of the country's leading property experts and has undertaken over 30 building projects including two self-builds and the renovation of a Grade-II listed farmhouse. 

Michael has presented over 150 property shows for BBC, ITV1, Channel 5, UK TV Style, and Discovery RealTime, including I Own Britain's Best Home; Don't Move Improve; Trading Up; Good Bid, Good Buy; Build, Buy or Restore?; How to Build A House; and Hard Sell.

Michael is also a regular expert at the Homebuilding & Renovating Shows. He has written for leading British newspapers, including The Daily Telegraph, Sunday Times, Daily Express and The Independent and has appeared on news programmes such as BBC Breakfast.