Hi all - looking for a bit of advice please?
Is there an issue for VAT reclaim if I have been classed as living in the new build for a number of years before getting completion?
I'm worried because a local builder told me that I could no longer get my VAT back because I'd been paying council tax on the new house for too long, so therefore would be classed as living in it. Is this true?
My new build took a number of years to complete - I started it in 2013 and I have finally booked Building Control to come for final inspection next month. Briefly, main reasons for delays were: running out of money, two bouts of cancer (amongst other health issues) & COVID (forced to isolate as clinically vulnerable).
My original planning permission was for a replacement dwelling to be built alongside the existing substandard house. My understanding was that demolition was to be carried out on the existing house, once the new house had been signed off for completion. However my local planner arrived on my doorstep soon after I completed the watertight shell (despite no water or heating inside) & stated that since I now had two houses, I would owe them two lots of council tax.
Long story short, to avoid getting bankrupted, I fitted a temporary kitchen & bathroom in the new house & ripped out the kitchen & bathrooms in the old house - the council accepted that the old house was now classed as non-habitable, and started charging me just one council tax for the new house (at a vastly increased rate, of course). Despite that, since I had no floors, stairs, heating etc in the new house, I continued living in the old house until finally demolishing it a couple of years ago (further delays to sign off because of landscaping).
So could this be an issue for reclaiming my VAT? Has anyone managed to get their VAT back in similar circumstances?
Thanks