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HMRC internal manual

VAT Construction

Reduced-rating the conversion of premises to a different residential use: conversions into premises intended for use for a relevant residential purpose where the residential accommodation is being provided by a home or institution or a hospice

Conversions to premises intended for use solely for a relevant residential purpose are qualifying conversions when both:

  • the premises being converted (a building, part of building, or any combination of buildings and parts of buildings) were not last used before the conversion to any extent for a relevant residential purpose
  • after the conversion, those premises will form the entirety of a home or institution or hospice.