Qualifying apartments
Prior to 8 October 2025, the reduced rate of Value-Added Tax (VAT) applied to the sale of all new apartments.
With effect from 8 October 2025, the second reduced rate applies to the supply of certain qualifying apartments.
With effect from 26 November 2025, the scope of the second reduced rate was extended to include:
- qualifying student accommodation
- and
- the construction until completed of qualifying apartments and apartment blocks.
Generally, the sale of second-hand apartments is exempt from VAT.
Further guidance contains more detailed information on:
- the VAT rate for Qualifying Apartments (8 October to 25 November 2025)
- and
- the VAT treatment of the Supply and Construction of Qualifying Apartments and Apartment Blocks.
This guidance should be read in conjunction with the guidance on Supply of Property and VAT treatment of Construction Services.