VAT excemption - time limit

[Guest Alphonsox]

A slightly different question on VAT excemption for self build. Our planning is for a main house plus a “sun room” tacked on one side. We have nearly finished the main house and should get a completion certificate within the next year, (at which point we will immediately submit a VAT claim), but haven’t started the sun room and don’t currently intend to.

My understanding is that planning works on a “I've started so I can finish” basis meaning that I can build  the sun room at any point in the future. If I build it 5 years from now I clearly won’t be able to personally reclaim any VAT as I only get one shot at this, but will the works be zero rated if I go for a supply and fit solution ?

[nod]

50 minutes ago, Alphonsox said:

A slightly different question on VAT excemption for self build. Our planning is for a main house plus a “sun room” tacked on one side. We have nearly finished the main house and should get a completion certificate within the next year, (at which point we will immediately submit a VAT claim), but haven’t started the sun room and don’t currently intend to.

My understanding is that planning works on a “I've started so I can finish” basis meaning that I can build  the sun room at any point in the future. If I build it 5 years from now I clearly won’t be able to personally reclaim any VAT as I only get one shot at this, but will the works be zero rated if I go for a supply and fit solution ?

No if you have moved into the property There will be vat on the contractors labour 

But there are plenty of smaller contractor that are not vat registered 

[newhome]

1 hour ago, Alphonsox said:

A slightly different question on VAT excemption for self build. Our planning is for a main house plus a “sun room” tacked on one side. We have nearly finished the main house and should get a completion certificate within the next year, (at which point we will immediately submit a VAT claim), but haven’t started the sun room and don’t currently intend to.

My understanding is that planning works on a “I've started so I can finish” basis meaning that I can build  the sun room at any point in the future. If I build it 5 years from now I clearly won’t be able to personally reclaim any VAT as I only get one shot at this, but will the works be zero rated if I go for a supply and fit solution ?

 

I think you would struggle to persuade a VAT registered trader that the work should be zero rated 5 years down the line. You might get away with it for a few months but not years I imagine. Trades are governed by VAT Notice 708 and in terms of completion it says the following (see below). Worth a punt I guess but don't be surprised if you get told no. A halfway house could be to buy the materials before you submit the VAT claim and reclaim the VAT on them. 5 years is a long time to store materials however. My planning for example states that the drive should be tarmac. I haven't fully completed the drive yet but I'm not expecting to be able to get the work zero rated when I do. 

3.3.2 When is construction ‘complete’?

‘Completion’ takes place at a given moment in time. That point in time is determined by weighing up the relevant factors of the project, such as:

• when a Certificate of Completion is issued
• the accordance to approved plans and specifications
• the scope of the planning consent and variations to it
• whether the building is habitable or fit for purpose

Once construction is ‘complete’, any further supplies of construction services (other than those mentioned at 3.3.6) are no longer ‘in the course of construction’ and are thus ineligible for the zero rate.