Vat reclaim on demolition?

[dnb]

I have a small amount of demolition to do on site, specified as a requirement in my planning permission. I am not doing it myself, so wondered if I could successfully get it zero rated for VAT (since it's mostly labour) or could claim any of it when the time comes? It is being done after "official start" has been declared in case that makes a difference.

 

I think the answer is "no" because it's not directly part of the build, but it's worth asking the question because it's a few pounds I don't have to spend!

[ragg987]

If this demolition is part of a larger piece that is zero-rated and is on your planning permission, then yes you can request that the demolishing company zero-rate it. You cannot reclaim it after as they are providing a service (i.e. the demolition).

[dnb]

The planning permission is to demolish and rebuild. So I will give it a go.

 

Thanks!

[ragg987]

I had resistance from some suppliers, but once I supplied my planning permission to them it was fine, their accountants then had a basis to zero rate and everyone was happy.

[Bozza]

Yes definitely should be zero rated.  I’ve just done the same. My demo & site prep required tree surgeon to remove trees, jcb operator to demo house, lorry driver & lorry to take rubble away, and SSE to relocate overhead power cable.  All charged zero VAT for the work, but some required me to explain rules.  But had to pay VAT for skip hire.

Edited September 12, 2019 by Bozza

[newhome]

It counts as work closely connected to the construction of the building and thus is is eligible for zero rating. Point the company carrying it out at VAT Notice 708 and supply them with a copy of your planning permission. 

 

 

 

VAT Notice 708

 

 

 

[Conor]

Yes, my demolition is included in the quote for the groundworks and is zero rated.