VAT relief on bathroom adaptations

Two different reliefs

There are two separate VAT reliefs. Which one you can use depends on whether you are disabled and on your age.

No VAT if you are disabled

Who counts as disabled?

HMRC says a person is "chronically sick or disabled" if they have:

• a physical or mental impairment with a long-term and substantial effect on their ability to do everyday activities, or
• a condition that doctors treat as a chronic sickness, such as diabetes

HMRC says the relief is not means-tested, does not depend on benefits, and you do not need to be registered disabled. But it "does not include an elderly person who is not disabled or chronically sick", or someone only temporarily disabled, such as with a broken limb.

What work is covered?

HMRC says builders can zero-rate "providing, extending or adapting a bathroom, washroom or lavatory" when the work is necessary to suit the condition of a disabled person in their own home. For this relief, HMRC says a bathroom "includes a shower or 'wet' room".

HMRC gives examples such as:

• having a bath removed and replaced with a shower or walk-in bath, if your disability makes it hard to get in and out of a normal bath
• having a bathroom put in on the ground floor, if your disability means you cannot get upstairs

Work that is needed to provide the new facilities can be zero-rated too, such as plumbing, drainage, electrics, and putting back the decoration and tiling nearby.

What is not covered

• A new bathroom or refit "as a general home improvement".
• Fees for an architect, surveyor or consultant (unless part of a single "design and build" contract).
• Materials you buy for a friend or relative to fit for free, or to fit yourself.

Equipment

Age UK says disabled people "do not have to pay Value Added Tax (VAT) when buying equipment designed or adapted to help with daily living". HMRC's notice lists items such as commode chairs, and "frames or other devices to help sitting on or rising from a sanitary appliance".

5% VAT if you are 60 or over

HMRC says the reduced rate applies to these six items when they are supplied and installed in the home of someone aged 60 or over:

1. grab rails
2. ramps
3. stair lifts
4. bath lifts
5. built-in shower seats, or showers containing built-in shower seats
6. walk-in baths with sealable doors

Things to know:

• The installer must supply and fit the item. Buying the item on its own does not count.
• Someone else (a relative, a charity or the council) can order and pay for it.
• It must be a private home, not a care home.
• Repairs and replacements after installation do not get the reduced rate.
• General adaptations, such as building an extension, do not get the reduced rate.

The declaration

HMRC does not issue a certificate. Instead, you give each supplier a signed written declaration:

• It should be separate from the order form or invoice.
• If you cannot sign it yourself, a relative, partner or other responsible person can.
• Do not send it to HMRC. The supplier keeps it.
• Only sign if you are sure you qualify — HMRC says there are penalties for false declarations.

For the 5% rate, HMRC gives this wording: "I ……… (full name) of ……… (the address where the installation is taking place) declare that I am 60 or over and that this supply and installation qualifies for the reduced rate of VAT in accordance with the Value Added Tax (Reduced Rate) Order 2007."

For the zero rate, HMRC publishes a declaration form for disabled people (opens another website). Your supplier may give you their own form.

Grants and VAT

If your work is paid for by a Disabled Facilities Grant, HMRC says the builder's invoice should make clear the work was done for the disabled person who was given the grant.

If you were charged VAT by mistake

HMRC says: "There's no facility for HMRC to refund VAT to you." If you think you qualified but were charged VAT, ask your supplier for a refund.

Questions?

HMRC has a helpline for VAT reliefs for disabled and older people: 0300 123 1073, Monday to Friday, 8:30am to 5:30pm (closed on bank holidays). HMRC says its advisers "cannot tell you whether or not you're disabled or chronically sick".

Questions people ask

Do I have to pay VAT on a walk-in bath?

If you are disabled or have a long-term illness, and a walk-in bath is fitted because you find it hard to get in and out of a normal bath, the work can be free of VAT. If you are 60 or over, a walk-in bath with a sealable door has VAT at 5% when it is supplied and installed in your home. You sign a declaration for the supplier — HMRC does not issue a certificate.

This guide is general information, not medical, financial or legal advice. Everyone’s needs are different. Speak to an occupational therapist, your GP or the organisations we link to before making decisions.