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bigduckontax
bigduckontax, Accountant
Category: Tax
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If I build a house, which in all ways meets the conditions,

Customer Question

If I build a house, which in all ways meets the conditions, on pilons over an existing building, but not touching it in any way, can the construction be zero rated. I cant find anything in vat notice which says either way.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
The construction of a building for human habitation is a zero rated supply, although a conversion is a reduced rate supply (5%). Here is the relevant Gov UK link: https://www.gov.uk/vat-builders/houses-flats If you are the builder actually undertaking the work then you charge the appropriate rate of VAT. If you are an owner having the work done for you then you may have to advise the builder of the position. I do hope my reply has been of assistance. .
Customer: replied 1 year ago.
This doesn't really help, it is a new build over an existing property, no connections at all. I am the property owner. I believe it should be zero rated however..............
Expert:  bigduckontax replied 1 year ago.
You are probably correct. It was the 'on pilons over an existing building' which lead me down the conversion path. You have to warn off your builder though so that they do realise the VAT implications. Even the Gov UK web site emphasizes this requirement.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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