London, UK – June 12, 2026 – In the ever-evolving landscape of the UK construction industry, staying compliant with the correct VAT rates can be a real challenge. Allenby Accountants, a trusted name among construction accountants, is shedding light on the often-confusing VAT rules that apply to different types of building projects..
The changes, which will be introduced as part of the government's annual tax updates, aim to simplify and modernise the tax system while addressing issues related to economic growth, housing affordability, and corporate tax compliance. These reforms will have a profound effect on businesses and property transactions across the UK.
What Does VAT Really Mean for Your Building Project?
VAT can feel like a maze, but getting it right can save you thousands. Here’s how the different VAT rates could affect your next build, renovation, or conversion:
• 0%VAT:
Building a brand-new house, flat, or qualifying structure like a care home? You won’t pay VAT on the main construction costs—a huge boost for your budget.
• 5%VAT:
If you’re breathing new life into a home that’s been empty for two years or more, or turning an old office or barn into a home, you could benefit from a much lower VAT rate. Some energy-saving improvements also qualify.
• 20%VAT:
Most repairs, extensions, and professional services (like architects and surveyors) are charged at the standard rate.
• VATExempt:
Selling or leasing an existing residential property, or working on certain charity projects, may be VAT-exempt.
Why Trust Allenby Accountants?
At Allenby Accountants, we get the ins and outs of the property and construction world — because it’s what we do every day. Think of us as your financial sidekicks, here to help you stay on top of things like cash flow, tax planning, and those tricky VAT claims. Whether you’re breaking ground or wrapping up a build, we’ve got your back with advice that’s clear, practical, and tailored to your project. While you focus on building, we’ll handle the numbers — and make sure you stay compliant and profitable along the way.
Ready to Take the Stress Out of VAT?
Don’t let VAT confusion slow down your construction dreams. Allenby Accountants offers free, no-obligation consultations to help you get started with confidence. Whether you’re a first-time renovator or a seasoned developer, their tailored advice ensures you get every VAT relief you’re entitled to—and peace of mind throughout your project.
Contact Allenby Accountants today or visit their website to discover how their expertise can make your next construction project a success. Visit Allenby Accountants today.

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