Your services can be reduced-rated when all of the following conditions are met:
You renovate or alter ‘qualifying residential premises’ (read paragraph 8.2).
The premises have not been lived in for 2 years or more (read paragraph 8.3).
Where necessary, you hold a valid certificate (read section 17).
Your services are ‘qualifying services’ (read paragraph 8.4).
For an explanation of when you may need to apportion your charges read paragraph 8.5.

‘Qualifying residential premises’ means a:
single household dwelling (read paragraph 14.4)
multiple occupancy dwelling, such as bed-sits (read paragraph14.5)
building (or part of a building) which, when last lived in, was used for a relevant residential purpose (read paragraph 14.6), and after the renovation or alteration will be used solely for such a purpose (read paragraph 8.2.1)
building (or part of a building) which, when last lived in, was one of a number of buildings on the same site that were used together as a unit for a relevant residential purpose, and after the renovation or alteration will be used solely for such a purpose (read paragraph 8.2.1)

The premises being renovated or altered must be used solely for a ‘relevant residential purpose’ after the works have been carried out. The recipient of your supply must confirm this by giving you a certificate. You can read more about certificates for qualifying buildings in section 17.
Where a building, when last lived in, was one of a number of buildings on the same site used together as a unit for a relevant residential purpose (for example a number of buildings that together formed a care home) you need not renovate or alter all of the buildings for the reduced rate to apply.
But those that are renovated or altered must be used together as a unit solely for a relevant residential purpose and a certificate issued.

You can only reduce rate the renovation or alteration if, in the 2 years immediately before renovation works start, the qualifying residential premises has not been lived in.

If the premises is a building (or part of a building) which, when last lived in, was 1 of a number of buildings on the same site used together as a unit for a relevant residential purpose, then none of the buildings making up the original unit must have been lived in during the 2 years immediately before your work starts. So you cannot, for example, reduce rate the renovation or alteration of a dormant building within the grounds of an operational home or institution

If you reduced-rated your supply, you may be required to show that the building has not been lived in during the 2 years immediately before you start your work. Proof of such can be obtained from Electoral Roll and Council Tax records, utilities companies, Empty Property Officers in local authorities, or any other source that can be considered reliable.
If you hold a letter from an Empty Property Officer certifying that the property has not been lived in for 2 years, you do not need any other evidence. If an Empty Property Officer is unsure about when a property was last lived in, they should write with a best estimate. We may then call for other supporting evidence

You can ignore any use that is:
illegal occupation by squatters
occupation by ‘guardians’
non-residential use, such as storage for a business
A ‘guardian’ is a person who is installed in a property by the owner or on behalf of the owner to deter squatters and vandals. They may pay a low rent on terms that fall short of a formal tenancy. Alternatively, they may be paid to occupy the property.
A ‘guardian’ is to be distinguished from a caretaker or housekeeper who lives permanently on the property. Property occupied by a caretaker or housekeeper is likely to be furnished throughout.
If the dwelling has been lived in on an occasional basis (for example, because it was a second home) in the 2 years immediately before you start your work you cannot reduce rate your supply

There are 2 empty house rules for situations when people are living in the premises while refurbishment work is being carried out. The first relates to all qualifying premises (read paragraph 8.2).The second only relates to ‘single household dwellings

First rule

If the ‘qualifying residential premises’ have not been lived in during the 2 years immediately before your work starts, all of your work is reduced-rated. This is the case even if the premises start to be lived in again while you are carrying out your work. The occupier must move in on a day after you start your work.
But if, when your work starts, the premises are already being lived in, or have been lived in during the previous 2 years, all of your work is standard-rated

Second rule

You can reduce rate your services of the refurbishment or alterations to a ‘single household dwelling’ where all the following conditions are met:
The 2 years immediately before the occupier acquired the dwelling it had not been lived in.
No renovation or alteration had been carried out in the 2 years before the occupier acquired the dwelling (you can ignore minor works that were necessary to keep the dwelling dry and secure).
Your services are supplied to the occupier ― so if you are a subcontractor you must standard rate your work.
Your services take place within 1 year of the occupier acquiring the dwelling.
This exception to occupation will not apply to the renovation or alteration of multiple occupancy dwellings or buildings intended for use for a relevant residential purpose

Other than installing goods that are building materials (read paragraph 13.8) for examples of building materials), you can also reduce rate any works of repair, maintenance (such as redecoration), or improvement (such as the construction of an extension or the installation of double glazing) carried out to the fabric of the dwelling.
You can also reduce rate works within the immediate site of the dwelling that are in connection with the:
means of providing water, power, heat or access
means of providing drainage or security
provision of means of waste disposal
All other services are standard-rated. For example, you must standard rate:
the installation of goods that are not building materials, such as carpets or fitted bedroom furniture
the erection and dismantling of scaffolding
the hire of goods
landscaping
the provision of professional services, such as those provided by architects, surveyors, consultants and supervisors

If premises consisting of a single household dwelling, multiple occupancy dwelling, or building used for a relevant residential purpose are renovated or altered at the reduced rate, you can also reduce rate the:
renovation of a garage
construction of a garage
conversion of a building into a garage
Both the following conditions must be met:
work is carried out at the same time as the renovation or alteration of the premises concerned
the garage is intended to be occupied with the renovated or altered premises
But you cannot reduce rate the provision of a hardstanding unless it is also used as an access

If you carry out work that requires statutory planning consent or statutory building control and it has not been granted, then your work is standard-rated

You can only reduce rate those services detailed in (read paragraph 8.4) when they’re supplied in the course of a qualifying renovation or alteration. If your services cover a wider range of work then you may apportion your charge on a fair and reasonable basis. If you decide not to make an apportionment then none of your work can be reduced-rated