Conservatory VAT

There is a little confusion around how VAT is applied to conservatory prices and on the following pages we will explain how different VAT rates are applied when certain conditions are met.

In brief, under normal circumstances conservatories and orangeries are subject to VAT at the current standard rate of 20% even if they are built in a conservation area, green belt, or a Area of Outstanding Natural Beauty (ANOB).

If a company offers to install a conservatory “VAT FREE” they may be a very small company that has not reached their tax threshold and only install one or two conservatories a year, or, much more likely, they have already included the VAT within their net price, then have added the VAT again and are pretending it is VAT FREE. They can’t avoid or evade the tax, it has to be paid! There is no such thing as VAT FREE unless the property is a new build and Zero Rated!

On the following pages we explain:

• The VAT treatment for Listed Buildings
• The VAT treatment at the Zero Rate for New Buildings
• The Zero, 5% and 20% VAT Rates for Barn Conversions
• How VAT is applied at the 5% Rate for Uninhabited Buildings
• What happens if the zero rate is offered or asked for illegally

Need further advice? Is there a topic we haven’t covered you’d like to know about, or think should be added to these pages?

Then please Contact Us and tell us what you would like to know, or see added, and we’ll get back to you right away.