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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13915
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I am retired but have been trying to sell a plot of land

Resolved Question:

I am retired but have been trying to sell a plot of land from my garden and to use the money to rebuild my own house. We have detailed planning permission to build two houses. The land has not sold and I am contemplating building both houses and selling one complete. Can I recover VAT on the 2nd house as I am not VAT registered or a builder?
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.

Hi

Thanks for your question

Will you move into the new build? And when you say you will "rebuild" your own property - can you expand on this?

Thanks

Sam

Customer: replied 1 year ago.
Sorry for the delay but just had a prospective purchaser call in. We will live in the house on Plot 1 but not that on Plot 2.
Expert:  Sam replied 1 year ago.

Hi

Thanks for your response then you cannot claim the costs for plot 2 as this will not be your own home but sold for profit - but you will be eligable for Plot 1 if a true rebuild and not just a conversion/refurb

So in answer to your original question No you cannot reclaim VAT on the 2nd house

Thanks

Sam

Customer: replied 1 year ago.
Thank you Sam- that is what I had concluded but needed to check. However, I can sell the land with a building contract ready for the purchaser to sign which would be zero rated by the contractor who would not be me.Kind regards,Richard
Expert:  Sam replied 1 year ago.

Hi

Thanks for your response

Precisely! As they are trading and therefore can apply the usual VAT rules for the build- do let me know if I can assist further - but it would be appreciated if you could take the time out to rate me for the level of service I have provided (or click accept) as this ensures Just Answer credit me for my time

Thanks

Sam

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