Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

VAT Construction

Dwellings - an explanation of terms: about this section

The word dwelling isn’t defined. We apply the meaning given to the word in Uratemp Ventures Ltd v Collins ([2002] 1 All ER 46), a case under the Housing Act 1988. The House of Lords found that a ‘dwelling’ is:

a place where one lives, regarding and treating it as home.

For VAT purposes, however, the term ‘dwelling’ is used in a variety of contexts and is often used in combination with other words to identify a specific type of dwelling. The wording depends on the context. In summary:

Term Context Specific type of dwelling?  
       
‘neither designed or adapted for use as a dwelling’ zero-rating - the status of a building before a non-residential conversion takes place    
  No (VCONST04410)    
‘designed as a dwelling or number of dwellings’ zero-rating - the status of a building after construction or a residential conversion takes place    
  Yes (VCONST14100)    
‘designed to remain as or become a dwelling or number of dwellings’ zero-rating - the status of a building after an approved alteration takes place    
  Yes (VCONST14300)    
‘single household dwelling’ reduced-rating - the status of a building both before and after a conversion, or after a renovation, takes place    
  Yes (VCONST14400)    
‘multiple occupancy dwelling’ reduced-rating - the status of a building both before and after a conversion, or after a renovation, takes place Yes (VCONST14500)