Hi All,
We're about to start the building work on my self-build and am trying to get to the bottom of whether it will be classes new-build or conversion (so I know what VAT rate to ask my builders to charge me & hence ensure my eventual claim for all the VAT, including materials, is valid).
My main puzzle is that the planning permission explicitly says "this is a new build", but I will be retaining some derelict walls on the site, which the HMRC guidance suggests means "conversion". In my first conversation with HMRC they said "new build". In the second they said "can't tell you until you submit you claim". The trouble is by the time I submit the claim I can't retrospectively ask all the contractors to change their billing if I've got the classification wrong.
The building will be something like this (though currently planned to have some kind of flashing taking water to the outside of the stone walls).
The second potential conundrum is that my planning permission includes a separate structure (a conversion) on the same site which will eventually be a holiday let. Clearly that won't quality for the VAT reclaim & we won't start it until the main house is complete, but does it affect the validity of my claim for the main house?
Thanks a lot,
Adam