VAT Exemtpt renovating property unlived in for 10 years

MIKEP1

Help needed. I have just bought a property which has not been lived in for 20 years. The previous owner bought the property to renovate but due to circumstances, he left it to stand for this long.

The background I have is I know that if you can prove a property has not been lived in for 10 years or more, then any renovation work will be classed as converting to a residential dwelling, meaning I will be vat exempt from building materials I purchase (have to claim back at the end) and also a reduced 5% vat rate on vat registered trades brought in.

The problem I have is that, although I know the previous owner has never lived there or rented out, he actually paid council tax, water rates, and was on the electoral role, all as if he lived there. All of these circumstances mean I'm finding it hard to find sufficient evidence to satisfy the VAT office. The other options available as declared on the VAT claim form are from utility companies, i.e. showing the usage over the last 10 years, but all in-roads made to Npower and British Gas, have proved fruitless as they claim providing the info is breach of confidentiality.

Has anyone had any experience with this or have any suggestions as I've been working on the house for a month now and seem to be running out of ideas!

rxbren

Doubt theyll agree to say its unlived in as electoral role and council rates have been paid it wont matter what utility companies say as they can argue that the property could have been self powered by a generator

MIKEP1

I was thinking I could possibly report the fact he has been falsly claiming residence there whilst living somewhere else?

Also, why would Vat office offer utility as a way of proof if they then wouldn't accept it?

ukmaggie45

If it was a second home he might be liable for Capital Gains Tax on the sale - if he made a gain of course! Where was he living for the 20 years he owned this property?

Please note I don't know a lot about tax law, but I do know that we've moved to a new home and haven't sold old home yet, and we have 3 years to sell before we come liable for CGT on our old home. Hopefully it won't be too much for us, as we lived there for 38 years before moving out.

I am disabled so it's been complicated for us moving, we bought new home and had to totally renovate before we could move in (took over a year), so not feasible to sell first. Only reason could do this was inheritance from my parents. Been here just over one year now, so we need to clear old home fast and get it on the market!

This probably doesn't actually help you much, but thought I'd post just in case it might!

ukmaggie45

PS he would have to pay Council Tax anyway, even if he didn't live there. You only get one year's "holiday" from CT if house is unoccupied. We had to start paying full CT once the year was up, even though it was a few months more before house was habitable.