Demolishing two lockup garages

[Rich Pen]

Demolishing two lock up garages and replacing with a two bedroom house.To rent out.

Will any VAT be recoverable.?

[Mr Punter]

Not a self build?  Are you VAT registered?  I am about to start 3 new build flats to rent.  We have a company that owns the land and will own the future flats and they will get our development company owned by us who are VAT and CIS registered to design and build for a contract.  Dev company can reclaim VAT and does not need to charge it on as it is new build.

 

I suggest you get your own advice as a mistake could be expensive.

[newhome]

14 hours ago, Rich Pen said:

Demolishing two lock up garages and replacing with a two bedroom house.To rent out.

Will any VAT be recoverable.?

You can’t use the DIY Housebuilders’ reclaim scheme for this since this is only for houses you intend to live in. As @Mr Punter says you may be able to reclaim the VAT if you are VAT registered but please take professional advice.