Spray Foam Removal & VAT Exemptions: A Complete Guide for UK Homeowners
Could you qualify for 0% VAT on removal work? Find out here
The Good News: You May Qualify for 0% VAT
Under UK tax law, spray foam removal can be zero-rated for VAT if it qualifies as work to a "protected building."
This could save you £1,000-£2,500 on a typical removal project.
Who Qualifies for 0% VAT?
✓ Protected Buildings (0% VAT)
Properties that qualify as "protected buildings" under VAT Notice 708 can receive 0% VAT on approved alterations and repairs, including spray foam removal.
You qualify if your property is:
Listed Building (Grade I, II*, or II)
Officially designated as a building of special architectural or historic interest
Scheduled Monument
Nationally important archaeological site or historic building
Building in a Conservation Area (approved works only)
Work that requires conservation area consent or listed building consent
How to check:
- • Search "Historic England National Heritage List" + your address
- • Check your property deeds for listing status
- • Contact your local council's planning department
⚠️ Charitable Buildings (5% VAT)
Buildings used "solely for a relevant charitable purpose" qualify for reduced 5% VAT (not zero-rated, but still a saving).
Examples: Churches, village halls, scout huts, registered charity headquarters
✗ Standard Residential Properties (20% VAT)
If your home is NOT listed, a scheduled monument, or work requiring conservation consent, you'll pay standard 20% VAT.
This applies to the vast majority (95%+) of UK homes.
What Work Qualifies for the VAT Exemption?
Even if your building is protected, not all work automatically qualifies for 0% VAT. The work must be:
"Approved alterations" to the building
Spray foam removal qualifies as it alters the insulation/roof structure
Repairs necessary to maintain the building
Includes associated timber repairs discovered during removal
Work directly on the protected building itself
Roof/loft work qualifies (not separate outbuildings unless also listed)
What DOESN'T qualify:
- ✗ Routine maintenance (cleaning gutters, painting, etc.)
- ✗ New installations unrelated to the protected structure
- ✗ Works to modern extensions/additions (unless also listed)
- ✗ Professional fees (surveyor, architect) - these are always standard-rated
How Much Could You Save?
Example savings on typical removal projects:
Standard rate: £6,000 inc VAT | Zero-rated: £5,000
Standard rate: £9,600 inc VAT | Zero-rated: £8,000
Standard rate: £14,400 inc VAT | Zero-rated: £12,000
How to Claim VAT Exemption
Confirm Your Building's Protected Status
Before requesting quotes, verify your property qualifies:
- • Obtain official listing documentation from Historic England
- • Get written confirmation from your local conservation officer
- • Keep evidence of scheduled monument status if applicable
Provide Documentation to Your Contractor
Give the removal company:
- • Copy of listing certificate or scheduled monument designation
- • Confirmation that the work qualifies as "approved alterations"
- • Letter from conservation officer if required
Complete VAT Certificate
You'll need to sign a certificate confirming:
- • The building's protected status
- • The work qualifies under VAT Notice 708
- • You're not reclaiming VAT (i.e., not a business expense)
Note: The contractor will provide this form; it's their legal requirement to obtain it.
Contractor Issues Zero-Rated Invoice
The invoice should state:
- • "Zero-rated for VAT under Group 6, Schedule 8, VATA 1994"
- • Reference to VAT Notice 708
- • Total price with 0% VAT clearly shown
Common Mistakes to Avoid
Assuming all old buildings qualify
Age alone doesn't matter—only official protected status counts
Not mentioning protected status until after work is done
Tell contractors BEFORE quoting—you can't retroactively reclaim VAT
Accepting standard VAT when you shouldn't
Some contractors aren't aware of the exemption—educate them or find one who knows
Forgetting to get the VAT certificate signed
Both you AND the contractor could face penalties if HMRC audits and this is missing
⚠️ What If the Contractor Refuses?
Some contractors are unfamiliar with protected building VAT rules and may hesitate to apply 0% VAT.
What to do:
- 1. Direct them to HMRC VAT Notice 708 (free download from gov.uk)
- 2. Offer to provide all necessary documentation upfront
- 3. Suggest they consult their accountant or HMRC VAT helpline (0300 200 3700)
- 4. If they still refuse, find a contractor familiar with listed building work
Note: If a contractor genuinely can't apply zero-rating (e.g., they're not VAT-registered), that's legitimate. But VAT-registered contractors MUST apply the correct rate when you qualify.
Other Potential Tax Benefits
Grant Funding for Listed Buildings
Some owners of listed buildings can access grants for essential repairs and conservation work:
- • Historic England Repair Grants (for Grade I and II* buildings at risk)
- • Local authority conservation grants (check with your council)
- • National Heritage Lottery Fund (community buildings)
Spray foam removal may qualify if it's necessary to prevent further deterioration of the protected structure. Contact your local conservation officer for guidance.
Quick Checklist: Do I Qualify?
If you checked all boxes: You likely qualify for 0% VAT. Provide documentation to your contractor and request zero-rated quotes.
Need Help Claiming VAT Exemption?
We work with contractors experienced in listed building work and VAT exemptions
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