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Written question asked by Jo Platt (Labour) on Friday, 20 February 2026, in the House of Commons. It was due for an answer on Tuesday, 24 February 2026. It was answered by Dan Tomlinson (Labour) on Thursday, 26 February 2026 on behalf of the Treasury.

Housing: VAT

Question

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of disapplying VAT for the conversion of non-residential buildings into accommodation.

Answer

To support the delivery of new homes, conversions of buildings from a commercial to a residential use are subject to a reduced rate of VAT at 5%. The reduced 5% rate also applies to conversions of buildings from one residential use to another and to renovations of residential buildings that have been empty for at least two years.

Further information on VAT on building works can be found here: https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708

Secondary information

Type
Written question
Reference
114040
Session
2024-26
Subjects
Housing VAT Change of use
Link
View this Written question on www.parliament.uk