Readers’ forum: Is 5% or 20% VAT charged on work for new garages?

My client specialises in constructing and repairing garages for dwellings but I am confused by the rules about 5% VAT on building services when a residential conversion takes place.

To give an example a recent project involved the conversion of a pub into six apartments and my client built six new garages – all linked – on the land that used to be where the pub car park was located. Each garage is recorded on the title deeds as being relevant to a specific flat ie one garage for each flat and it is designed to park a vehicle.

My client’s view is that he should only charge 5% VAT on his materials and labour to the developer but when I asked him why he had reached this conclusion he said that it was ‘because Moira in accounts’ at the developer’s office told him it was the...