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bigduckontax
bigduckontax, Accountant
Category: Tax
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I bought a detached house in Scotland in Aug 2015 and no one

Resolved Question:

I bought a detached house in Scotland in Aug 2015 and no one has lived in the property since then. It was empty as I was trying to get planning permission to do major changes i.e. structural change, adding another floor and an extension to the property before I could move in to live with my family.The work started around 15th April, 2017 once the Building Warrant was approved. The builder has been charging 20% VAT since the work started but I have found out that I should be charged only 5% VAT. Is that correct? Please provide more information.Also how to claim the other 20% VAT payments back if I am eligible for 5% VAT?Thanks
Submitted: 2 months ago.
Category: Tax
Expert:  bigduckontax replied 2 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

I am of the opinion that your builder is charging the correct rate of VAT. Although the 5% rate is available for conversions of empty residential premises I would suggest that HMRC would regard the vacation as temporary and an attempt at tax evasion.

I am so sorry to have to rain on your parade.

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Expert:  bigduckontax replied 2 months ago.

Thank you for your support.