VAT & Building Your Home – What You Need to Know Our new blog post explores how VAT is applied to private residential construction projects—and how understanding the rules can lead to significant savings. This visual guide outlines some of the key scenarios where different VAT rates apply (swipe through): 1. Ashdown Forest House A new build home we’re currently working on. As a brand-new dwelling, it qualifies for 0% VAT on construction costs. 2. VAT Rates Overview A quick comparison of typical VAT rates—0%, 5%, and 20%—depending on the nature of the project. 3. Georgian Derelict Home Properties that have been unoccupied for more than two years may be eligible for the reduced 5% VAT rate on refurbishment works. 4. Derelict Farmhouse Substantial renovations to long-abandoned properties may also qualify for 5% VAT. 5. Warehouse Conversion Conversions of non-residential buildings—such as barns or warehouses—to homes are generally eligible for the 5% VAT rate. 6. Full Demolition If ...