Reclaiming VAT on site preparation work

[newbuild]

I was wondering if it is possible to reclaim VAT on materials used before receiving planning permission? I'm currently planning site preparation work, e.g. tree removal, building boundary walls, installing entrance gates. Assuming I am granted planning permission, will I be able to reclaim for this?

[recoveringbuilder]

2 hours ago, newbuild said:

I was wondering if it is possible to reclaim VAT on materials used before receiving planning permission? I'm currently planning site preparation work, e.g. tree removal, building boundary walls, installing entrance gates. Assuming I am granted planning permission, will I be able to reclaim for this?

As far as I’m aware you shouldn’t be doing anything on site until your planning and bw are through as well as the fact you need your cil exemption approved before starting . Any invoices dated before pp is granted won’t be eligible for reclaim 

[Jilly]

2 hours ago, newbuild said:

 site preparation work, e.g. tree removal, building boundary walls, installing entrance gates. 

All of these had planning conditions on mine, so go easy, and check out everything you do is allowed (never mind the VAT) in case you have a nosey neighbour who dobs you in to planning enforcement.

Edited June 13, 2021 by Jilly

[Temp]

4 hours ago, newbuild said:

I was wondering if it is possible to reclaim VAT on materials used before receiving planning permission? I'm currently planning site preparation work, e.g. tree removal, building boundary walls, installing entrance gates. Assuming I am granted planning permission, will I be able to reclaim for this?

 

No.

 

There was a case where the owner was building a house that had a planning condition preventing separate occupation (eg it was a holiday home in garden). Half way through they got the PP amended to allow separate occupation making it eligible for the VAT reclaim. HMRC declined the the VAT reclaim on everything purchased before the PP was amended. 

 

I think the reclaim form asks for the date PP was granted. They can check this against dates on the receipts.

 

If the CIL has been implemented in your area then do not start any work on site until you have got PP and done the exemption claim or you will loose the exemption and that can be v.expensive. 

 

[newbuild]

Thanks for the advice everyone - very helpful. Sounds like wishful thinking on my part!

 

@recoveringbuilder, I'm not planning any work that would preclude the CIL exemption, just preparing the site for my full planning application.

@Jilly, don't worry - everything is above board! I'm not trying to sneak anything in...

@Temp, hopefully they hadn't carried out too much work before the change in status!

[Temp]

3 hours ago, newbuild said:

I'm not planning any work that would preclude the CIL exemption

 

Err..

 

On 13/06/2021 at 12:13, newbuild said:

I'm currently planning site preparation work, e.g. tree removal, building boundary walls, installing entrance gates.

 

Does the plot already have a house on it? eg so that boundary walls and gates can be done under PDR for that house? If not I would hold off on those.