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HMRC internal manual

VAT Construction

Zero-rating the conversion of non-residential buildings for relevant housing associations: about this section

This section provides guidance on when the conversion of ‘non-residential’ buildings, for ‘relevant housing associations’, is zero-rated.

The zero rate only applies to conversions that result in buildings that are:

  • ‘designed as a dwelling or number of dwellings’ (VCONST14100)


  • intended for use solely for a ‘relevant residential purpose’ (VCONST15000).

This relief applies only to supplies made to the housing association itself. It does not apply to supplies made by one contractor to another, even where the other contractor is working for the relevant housing association.

There are occasions when these supplies may be apportioned (VCONST05600).