VAT on rebuilds!

[mikew1978]

Hello guys! 

Been on the forum for a little while but never needed to post till now!

i have some questions/ queries!

 

We currently have an old cottage which we have planning permissions to renovate and substantially extend, and raise the roof line on. 

We want to save on the VAT aspect and so a knock down (demolition) is on our menu.

 

1. Do we need different/ separate planning permission to knock down and rebuild ?

 

2. Can we leave up the 'shell' of the old cottage? 3 walls, 2 walls or 1 wall? Anything?

 

3. Who is best to check with? Planning? HMRC?

 

Any information will be greatly appreciated and received! 

 

Thanks in advance :-) 

 

Mike

[PeterW]

Hi Mike

 

to answer your points :

 

1. yes in most circumstances. The PP has to list the demolition and then what is being retained. 

 

2. Two walls maximum can remain - usually those facing the highway but this needs to be a condition of the planning. 

 

3. It's on the HMRC VAT for Selfbuilders fact sheet - planning won't have a clue ..!!

 

Good luck with planning and keep us posted

 

Peter

[Lesgrandepotato]

Has it been empty more than 2years? If so then you should be able to get 5% vat on the build as opposed to 20%

[Temp]

See the notes at the back of the new build reclaim form, in particular page 4 para 9..

https://www.gov.uk/government/publications/vat-refunds-for-diy-housebuilders-claim-form-for-new-houses-vat431nb

[Temp]

21 hours ago, Lesgrandepotato said:

Has it been empty more than 2years? If so then you should be able to get 5% vat on the build as opposed to 20%

 

The rules on this are quite strict. It has to have been empty for the two years before work starts. You can move in the day after work starts but move in the day before and your claim fails.