The VAT People logo
0161 477 6600

VAT and Property developers

VAT and Property developers

VAT

We are continuing to receive a number of calls on our helpline from property developers and their advisors seeking clarification of the VAT liability of construction or conversion costs, and requesting advice in relation to the recovery of VAT on costs relating to property development schemes.

The rules relating to such projects are complex and a developer will often suffer an unnecessary VAT cost in the event that advice is not sought.  Furthermore, simple planning can often reduce the VAT cost of relevant projects.

 It is therefore recommended that anyone commencing a property development project contacts our free helpline for a discussion in relation to the VAT issues that the development in question may face.

Related posts

Apr 29, 2026

Can a UK Business Reclaim EU VAT?

The VAT People provide specialist, practical advice to support UK businesses in recovering VAT incurred outside the UK and managing the associated compliance requirements. With extensive experience across EU jurisdictions and a detailed understanding of HMRC and overseas authority expectations, the focus is on delivering accurate, defensible outcomes.
Apr 27, 2026

Challenging HMRC’s VAT Treatment for Fly by Nite Rehearsal Studios

Fly by Nite Rehearsal Studios provides fully equipped rehearsal facilities for touring productions, alongside integrated services including rigging, crew, equipment hire and security. HMRC challenged the VAT treatment applied by the business, arguing that its supplies should be treated as exempt from VAT. Find out how The VAT People supported the business in challenging this position and achieving a commercially appropriate outcome.
Apr 20, 2026

VAT on Donated Goods to Charities April 2026 Changes Explained

HM Revenue & Customs (HMRC) revised its guidance on the VAT treatment of goods donated by VAT-registered businesses to charities, specifically where those goods are intended for onward donation or use in a charity’s non-business activities. These changes took effect from 1 April 2026 and provide a clearer, more structured framework for determining when a VAT charge does not arise on such donations. Read more here