Empty Dwelling Renovation

Client: Private client
Project Value: £3 million
Estimated VAT Savings: £400,000
Location: London

Overview

Landmark PT advised on the VAT treatment for the renovation and extension of a derelict dwelling into a high-end private residence in central London. The project involved multiple trade contractors and extensive design input across structural, architectural, and interior packages.


VAT Issues

The project presented a range of VAT challenges, including:

  • Collate evidence to support case for the property not being occupied

  • Applying the 5% reduced rate for the renovation of a derelict dwelling.

  • Managing mixed-rate supplies for new build extensions (zero-rated) and retained elements (standard-rated).

  • Ensuring correct treatment for fitted joinery, bespoke kitchens, AV systems and interior finishes subject to 20% VAT.

  • Implementing cost apportionments across contractors where multiple rates applied.

  • Advising on the procurement and contractual structure to support correct VAT application throughout the works.

Our Role

We worked directly with the project’s quantity surveyor, architect, and main contractor to:

  • Analyse the works and apportion costs between 0%, 5%, and 20% VAT rates.

  • Prepare detailed VAT schedules for contractors to follow during billing.

  • Advise on procurement documentation to maintain compliance and maximise VAT efficiency.

  • Provide ongoing project support and VAT verification as works progressed.

Outcome

Through detailed analysis and proactive involvement, the client achieved an estimated £1.6 million VAT saving across construction and professional costs, ensuring compliance with HMRC requirements while maximising available VAT reliefs.