Zero Rated VAT on New Garage but not Attached Pool Room

[phykell]

Hi,

 

I recently renovated my house and had an old two-bay garage demolished. I'm building a new three-bay garage in a different position to the original but I'm considering extending it so that it covers an old, disused swimming pool with the aim of potentially renovating the pool and adding a gym, shower, sauna, etc.

 

I note that the following guidance on VAT implies that a garage can be zero-rated for VAT:

https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708#para3-2-1

However, in the same document, it mentions that enclosed pools can't be zero rated - it does seem odd that two examples of incidental use, i.e. not ancillary, can have different VAT rules.

 

It might sound complicated but I wondered if I can have the garage built, extend it as an enclosed pool/gym and claim (say) one-third (for the garage bit) of the VAT back - does that sound reasonable?

 

Thanks

[saveasteading]

Does it even qualify for zero rating? It isn't residential.

 

If it does  you could put a suspended floor over the pool. Beam and block. 

That would be my solution anway regardless of being able to dismantle it if you changed your mind later.

[phykell]

13 minutes ago, saveasteading said:

Does it even qualify for zero rating? It isn't residential.

 

If it does  you could put a suspended floor over the pool. Beam and block. 

That would be my solution anway regardless of being able to dismantle it if you changed your mind later.

My mistake I think - having re-read the guidance:

The sixth type of qualifying building is constructed when all of the following apply:

1. a garage is built, or a building is converted into a garage

2. the building is constructed or converted at the same time as, and intended to be occupied with a building ‘designed as a dwelling or number of dwellings’ ― read paragraph 14.2

I missed the "all of the following". It's definitely not being built at the same time as any buildings designed as a dwelling.

 

Perhaps the incoming Labour government will lower the VAT rate, or, God forbid, raise it!