I am currently converting an old store into residential use. This involves connecting all the services. The gas and electricity companies have both (after a reminder!) charged VAT on the connections at 5%. However the water supply company (Severn Trent) are adamant that, because their work is taking place in the public highway rather than within my home / on my land no reduced rate applies.

Since the work being done is purely to connect my property to the main (at my expense) I don’t see they have an argument. Does anyone have any clarification on this and how I can persuade Severn Trent to invoice me correctly, since at the moment they will not be moved! The building has not had a water supply previously and is a conversion from non-residential use.

  • Stephen Margerison

    I feel you may have a problem, as it is usually only new build that is vat exempt, also 5% seems reasonable.

  • J F

    Thanks for your answer Stephen, but Severn Trent are adamant I must pay 20% vat now. I understood with a conversion from non residential use suppliers should charge a reduced rate of 5%, which I can then reclaim from the tax office once the project is complete?

    The other utilities have charged 5%, it’s just Severn Trent who won’t reduce the rate. Can anyone else clarify the situation? Many thanks!

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