Could You Save Thousands on Your New Kitchen? A Guide to VAT Relief
A new kitchen is one of the most exciting investments you will make in your home. Like most major home improvements, the project is normally subject to the standard 20% VAT rate.
However, many homeowners do not realise that certain unique kitchen projects can qualify for a reduced or even zero rate of VAT. This can potentially save you thousands of pounds.
At Qudaus Living, we help you navigate these complex rules. Where the law allows, we can remove qualifying VAT at source so you do not have to pay it upfront and reclaim it later. All we require is the correct legal evidence and completed documentation before your order is placed.
Here is our straightforward guide to the three main UK VAT relief schemes and how they actually apply to your kitchen project.
1. Renovating an Empty Property
If you have purchased a residential property that has sat empty for a long time, you could unlock significant VAT savings during your renovation.
Properties Empty for 2+ Years (5% VAT)
If a home has been entirely unoccupied for at least two consecutive years, your renovation work may qualify for a reduced VAT rate of 5%.
The great news is that HMRC classifies fitted kitchen furniture as “building materials”. When a VAT-registered contractor supplies and installs your new kitchen as part of a qualifying 2-year empty home renovation, both the cabinetry and the installation labor qualify for the reduced 5% rate.
Properties Empty for 10+ Years (0% VAT)
If the property has been empty for a decade or more, the renovation work can qualify for 0% VAT.
Crucial Note: Under HMRC rules, a contractor cannot zero-rate this at source for a private homeowner. To claim this savings, you will pay the contractor the standard or reduced VAT rate upfront, and then you reclaim it at the end of the project via HMRC’s DIY Housebuilders Scheme.
What is Excluded?
- Freestanding Appliances: Fridges, freezers, and washing machines always carry 20% VAT.
- DIY Purchases: You cannot buy the materials yourself at a reduced rate; a VAT-registered company must supply and fit them.
What Proof Do You Need?
To secure this relief, you must provide official evidence of the empty period, such as:
- Council Tax records showing an empty property discount.
- Empty property letters from your local council officer.
- Direct statements from utility companies showing zero usage.
2. Accessibility & Specialist Kitchen Adaptations
A thoughtfully designed kitchen can completely transform daily life for someone living with a disability or long-term medical condition. However, VAT relief in this category is incredibly strict.
The Golden Rule: Equipment vs. Furniture
HMRC guidance explicitly states that entire domestic kitchens cannot be zero-rated for VAT. Unlike bathrooms, kitchens are completely excluded from general structural disability tax relief.
To qualify for 0% VAT, an item must be a specialist piece of equipment designed solely for use by a disabled person.
🟢 What CAN Qualify for 0% VAT:
- Mechanical Adjustments: Motorised or manual rise-and-fall tracking kits used to lower counters for wheelchair users.
- Bespoke Modifications: The specific trade labour costs required to physically alter a cabinet layout to create custom wheelchair knee-recesses.
🔴 What CANNOT Qualify (Standard 20% VAT Applies):
- Accessible Layouts: Standard kitchen units, pull-out larders, or drop-down basket mechanisms (as these are sold to and used by non-disabled people too).
- Enhanced Materials: High-performance features like worktops with “water-safe” or drip-retaining edges, rounded safety corners, or anti-bacterial surfaces.
- Standard Fixtures: Standard sinks, shallow bowls, or general kitchen taps.
To claim zero-rating on qualifying specialist hardware, you simply need to sign an HMRC VAT Eligibility Declaration before ordering.
3. Building a Brand-New Home
If you are building your own home from the ground up, the tax rules offer fantastic news for your kitchen budget.
Most fitted kitchen furniture installed in a qualifying, brand-new residential property benefits from 0% VAT.
Which Items are Tax-Free?
HMRC allows zero-rating on items “ordinarily incorporated” into a new dwelling, including:
- Fitted kitchen cabinets and island units.
- Built-in sinks and standard kitchen taps.
- Integrated extractor hoods.
Which Items Still Face 20% VAT?
Conventional domestic appliances are strictly excluded from new-build tax relief. You must still pay 20% VAT on both integrated and freestanding:
- Fridges and freezers.
- Dishwashers.
- Washing machines and tumble dryers.
- Conventional ovens and microwaves.
How to Manage the Savings
Depending on how your self-build is structured, you can either have a VAT-registered installer supply and fit the qualifying cabinets at 0% VAT from day one, or you can reclaim the eligible VAT at the end of the build using the HMRC DIY Housebuilders Scheme (within 6 months of completion).
Could You Be Eligible?
Use this simple checklist as a starting point.
You may qualify for VAT relief if:
☐ Your property has been empty for more than two years
☐ Your property has been empty for more than ten years
☐ You’re building a qualifying brand-new home
☐ Your project includes specialist equipment designed solely for use by a disabled person
☐ Your kitchen will be supplied and installed by a VAT-registered contractor, where required by the relevant relief
☐ You can provide the necessary supporting evidence before placing your order
If you’re unsure, don’t worry—we’ll happily talk you through the options.
How Qudaus Living Can Help
VAT legislation can be confusing, but that’s where we can help.
We’ll:
- Review your project to identify any genuine VAT relief opportunities.
- Explain exactly which elements of your kitchen may qualify.
- Ensure the correct VAT treatment is applied in accordance with HMRC guidance.
- Clearly separate qualifying items from standard-rated products within your quotation.
A quick conversation before you place your order could save you thousands of pounds while keeping your project fully compliant.
Get in touch with the Qudaus Living team today to discuss your upcoming project!
If you’re planning a new kitchen, renovation or self-build project, we’d be delighted to discuss your plans and advise whether any VAT relief may apply.
Contact Qudaus Living today to arrange a free design consultation.
Important Disclaimer
The information in this guide is intended as general guidance only and should not be regarded as tax or legal advice. VAT legislation is complex, and eligibility depends on the specific circumstances of each project and compliance with HMRC rules.
Any reduced or zero-rate VAT treatment is subject to satisfactory evidence, completed declarations (where required), and acceptance by HMRC. Qudaus Living reserves the right to request supporting documentation before applying any VAT relief and recommends seeking independent professional advice where appropriate.
