By Chris Dale
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June 17, 2025
When you're planning a new build, a renovation, or a quirky conversion project you've been dreaming about, there’s one aspect that might not make your heart race like the design itself—VAT. Yes, VAT might sound as thrilling as watching paint dry, but believe me, getting it right can make a significant difference to your overall budget. So, why should you care about VAT? At Artichoke, we are not just here to design good architecture — we are also here to ensure everything from design to delivery is as smart and cost-effective as possible. In some cases, VAT is a hidden savings opportunity. By understanding exactly how VAT applies to each part of your project, we might be able to help make sure you put your money into the right places on a project. And with a trusted team of consultants, including a Quantity Surveyor and a VAT specialist, we'll be well-equipped to secure savings that might just cover all our fees (and perhaps even fund that bit extra for those quirky design touches our clients love). Let’s take a quick look at some common VAT opportunities: • New Build Dwellings – 0% VAT (Zero-rated): When you're constructing a completely new residential home—even if we keep a few charming features like the façade or party walls intact—the project could qualify for a zero VAT rate. • Renovation of Empty Homes – 5% VAT (Reduced rate): If your property has been unoccupied for at least two years before the work starts, the renovation might be eligible for a reduced 5% VAT rate. • Conversions – 5% VAT (Reduced rate): Turning one home into two (or the other way around) or converting a non-residential building (say, an old office or barn) into a cosy home can also save you a bit on VAT. • Energy-Saving Materials – 0% or 5% VAT: Thanks to recent UK legislation, most energy-saving improvements like insulation, heat pumps, or solar panels installed in a residential setting usually attract a 0% VAT rate—though sometimes it might be 5% depending on specifics. • Adaptations for Disabled Persons – 0% VAT (Zero-rated): Any modifications made to help a disabled person can make the VAT bill disappear entirely (well, not actually vanish, but zero-rated, which is just as good). • For Businesses and Developers: If you're VAT-registered—whether as a business or developer—you might reclaim VAT on various building works and professional services (yours truly, the architect, included!). • Grant Schemes and Self-Builds: There are also a couple of schemes out there where, either through grants or self-build VAT reclaims, you could see even more savings—sometimes effectively reducing your VAT cost to zero.