Advises when the reduced rate of VAT at 5% applies to the alteration, conversion, creation and renovation of dwellings in existing properties and summarises the key points of Inland Revenue Information Sheet 4/01. Highlights the part-of-building trap, whereby only the work done in that part of a building where the number of dwellings changes qualifies for the 5% rate; the pub conversion problem, where work done to the living accommodation in a pub being converted into a dwelling will be taxed at the full rate if it is self-contained; that the conversion of non-residential buildings into, or the addition of extra bedrooms to, houses in multiple occupation does not attract the discount; and the rules and regulations surrounding qualifying residential purpose, certificates of intention, the renovation of empty dwellings and subcontractors services to the main contractor.