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HMRC internal manual

VAT Construction

From
HM Revenue & Customs
Updated
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Reduced-rating the conversion of premises to a different residential use: multiple occupancy conversions

Conversions to multiple occupancy conversions are qualifying conversions when both:

  • the premises being converted (a building or part of building) did not contain a multiple occupancy dwelling
  • after the conversion, those premises will not be used to any extent for a ‘relevant residential purpose’ (check VCONST14500 for what ‘multiple occupancy dwelling’ means).

Conversions to create additional bed-sitting rooms within an existing multiple occupancy dwelling are not qualifying conversions.