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An overview by Travers Smith, Taxand UK
Robert O’Hare and Aimee Hutchinson from Travers Smith, Taxand UK have authored a guide to UK construction industry tax in Thomson Reuters Practical Law. It gives a high-level overview of key taxes, reliefs, their legal sources, policy context, and upcoming changes.
The industry is subject to specific regimes including the Construction Industry Scheme (CIS), the VAT domestic reverse charge, and the 4% Residential Property Developer Tax (RPDT). Reliefs include Structures and Buildings Allowances (SBAs) and Land Remediation Relief (LRR), currently under government review. VAT treatment varies for dwellings, relevant residential or charitable purposes, conversions, and energy-saving materials. Future developments include the Building Safety Levy from October 2026. Recent case law (Orsted) confirmed some pre-construction surveys can qualify for capital allowances. HMRC continues to enforce strict anti-avoidance rules, with CIS compliance and reporting a key focus.
You can read the full overview here.
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