Bird

Good shout on trying ChatGPT, lookseehere! Thanks temp and andyscotland for your additional input.

And the heating system is zero-rated VAT, being classified as renewables. It is an air source heat pump with underfloor heating.

My builder has taken advice from his accountant and is proceeding at the 5% VAT rate, without me needing to generate any sort of certificate.

Are you certain of this? I haven't found any specific reference to limited companies in the official guidance https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708 but it does seem relevant to "developers", which is defined as the one who has commissioned the conversion. The following articles also seem to indicate the limited companies are eligible for this rate, unless something has since changed in the rules since written. https://www.taxinsider.co.uk/what-does-the-vat-rate-on-building-works-apply-to-ta This refers to a business-owned property conversion receiving 5% rate. https://hlca.co.uk/resources/vat-and-construction-works-5-vat-reduced-rate/#:~:text=Specific considerations for Developers This refers to the conditions under which a property developer receiving 5% might reclaim that 5%.

To which question?

I've got a commercial property purchased through a new limited company which has PP to convert to residential. It's been empty for 2 years, but not the years prior to PP being granted. My intention is to rent out the property, even holiday let if there isn't some restriction, but would move in if there is some other restriction. I have a builder lined up to do the conversion and I told him I am eligible for the reduced 5% VAT rate - He's asked for a certificate. I've found VAT Notice 708 documentation quite confusing to read and doesn't specifically address my case. 1. This 5% rate does apply to limited companies, not just individuals. 2. If my limited company registers for VAT, can it avoid the VAT charge altogether? 3. Are there restrictions on sale of the property after claiming reduced rate? 4. Are there restrictions on the use of the property after claiming reduced rate, for example short holiday rents? 5. Since I'm just making up a certificate and handing it to the builder, how does HMRC know I'm not evading tax? Is the builder accountable for this once he's accepted my certificate? Thanks!

The council has now confirmed a CIL liability of £0 as there is no new internal floorspace created in the conversion. That's £22,000 i don't have to pay!

Yes, I think you're right. But a reduced rate of 5% should be possible as a conversion from commercial to residential.

I was lucky enough to find a historic street view image from the relevant period showing two employees, keys in hand, locking up the premises! The council has confirmed it is acceptable evidence of being in use.

They simply said CIL form 5 must be submitted. This form includes a checklist with one point being "Photographic evidence of buildings in use on the relevant land". This may be tricky to obtain.

Thanks for the comment. My next option is to claim relief, then. As it was used commercially before purchase, it seems feasible to claim relief due to its previous use. Section 4 of https://www.planninggeek.co.uk/planning/cil/cil-faq/ says relief is possible if This is the case here, but I will contact my council to see if this is a releif they offer. I know counciles have discretion over some of the reliefs listed in the regulations. Assuming they do allow it to be claimed, I would assume they could simply check to to see if business rates were being paid, rather than me needing to track down a previous owner and ask for utility bills or some other proof of occupancy 5 years ago.

T 30 days? In this FAQ it says it is payable within 60 days https://www.planninggeek.co.uk/planning/cil/cil-faq/. They weren't asking you to pay within 30, just started asking, right?

I bought a city centre small commercial building to convert into one residence. It was purchased within a ltd company. I notice that a CIL exemption can apply if it is a self build, but details seem scarce. Is there any reason a CIL exemption application might be rejected if the property were purchased in a LTD?