Value Added Tax (VAT)
VAT is a tax on the final consumption of certain goods and services. The normal rate is 17 ½% but the current rates of VAT on building work are:-

• 0% for new dwellings or non-business charitable purposes.
• 5% on the cost of renovating buildings that have been empty for three years.
• 17 ½% on repairs of buildings, extensions and the construction of commercial buildings.

There is also a special 5% rate applicable on the installation of certain Energy Saving Materials.