Accountants and advisers PKF claim that property development and investment businesses are not making the most of a 5% VAT relief available for some residential renovation or conversion work. Projects that involve changing the number of dwellings in a property, converting commercial properties into residential ones, and changing multi-occupancy properties into domestic dwellings are eligible for the relief, and there are also zero rates for certain work carried out on listed buildings where alterations have been approved.

Irit Herzenshtein, partner at PKF, said: "There are a number of reliefs for residential properties that builders, developers and surveyors are often unaware of. The rules may seem confusing but an understanding of them could save a great deal of money.