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Sam
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Category: Tax
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I have contacted hmrc to seek clarification on zero rated construction

Resolved Question:

I have contacted hmrc to seek clarification on zero rated construction of a corner site, the existing building will be demolished leaving only two facades plus foundations, the person I spoke to seemed to think the site would qualify to be zero rated if I fulfil all requirements for a domestic dwelling necessary in notice 708 the one concern I have is that the planning permission proposal states ( Refurbishment, extension and adaption of an existing house) does the method I use to achieve this result affect either the existing p.p. or zero rating of the site, in the approved notice no conditions are attached to how I achieve the finished building only the usual colouring ,type of brick etc. many thanks
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.
Hi


Thanks for your question I am Sam and I am one of the UK tax experts here on Just Answer,

This for VAT purposes will qualify as anew build as its fine that the following remain after the building has been demolished

Party walls
Facades
Foundation's

However the fact that the planning permission does no detail how this build will be achieved is crucial for you to be able to VAT exempt the build, and whilst I am no expert in planning permission, it would be worth contacting the council to establish whether this should can be detailed within the agreed planning permission (usually this would be detailed)
But if this was outlined in your original submission to the council - and they knew of the extensive plan, then I would err on the side of caution and ask them to issue a letter to this effect.
AS its the VAT people you equally have to ensure you can meet all obligations on (as well as the council!)

Thanks

Sam
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