Bought an old house and got planning permission to knock down and build a new house.
I want to reclaim the VAT once completed using the DIY VAT scheme for self-builds and I know you cannot claim VAT on services by architects and professionals etc. Can you reclaim the VAT on demolition works.
It would be logical that you can, but tax does not seem to work like that.....
All useful comments appreciated.
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Do-It-Yourself scheme
You cannot reclaim VAT charged on demolition services.
You should ask the contractor to zero rate his services, which are 'in the course of the construction of a new dwelling.' The key is that the services of demolition are part of the overall process of construction.