Clarification of 'similar permission preventing separate disposal of converted property' for reduced VAT eligibility (Question 15 VAT431C)

[Barn Becs]

We are just starting to look at whether our barn conversion would qualify for reduced VAT.  We have full planning already.  

 

I have come across question 15 on the VAT43C form which talks about the conversion creating a new dwelling in its own right.

 

Well ours will be a totally detached residential dwelling, our new family home in fact, that we can live in totally independently, but the issue is the very very tiny cottage we live in at the moment is on the same plot and under the same title.  There is also a covenant on the title that says we can't split the holding.  Our plan is to use the cottage as ancillary storage to the barn when it is finished as we won't have any storage space in the barn due to the roof structure.

 

In the VAT refunds form guidance they use the term 'disposal' does this actually mean getting rid of/knocking the building down or does it refer to the sale of the property too?

 

i.e does it relate more to the physicality of buildings that perhaps aren't entirely detached, or would our barn also be considered as a building that can't be 'disposed' of separately due to the fact we couldn't sell it separately from the existing building?

 

We intend this to be our forever home so we have no interest in actually splitting off or selling either of the buildings, but we do need reduced VAT to make the conversion feasible financially.