As a landlord starting a small HMO property, what specific VAT implications do I need to be aware of for renovation costs, furnishing, and ongoing rental income, especially if some tenants are students?
Quick Answer
Residential rental income from an HMO is typically VAT exempt, meaning you cannot reclaim VAT on related renovation and furnishing costs. Specific exemptions or scenarios related to commercial properties or genuine new builds can alter this.
About This Topic
Landlords: Learn about VAT implications for HMO renovation costs, furnishing, and rental income. Residential income is VAT exempt, making VAT on costs irrecoverable. Factor 20% VAT into your budget for renovations and furnishings.
This question is part of our Tax & Accounting category, providing expert guidance on UK property investment.
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