Is construction of holiday home standard or zero rated?

Our client owns about 4.5 acres of land and has been granted planning to build a number of wooden lodges and create a holiday park.

Am I right in thinking that the construction of these holiday homes will be zero rated?  It is the intention of my client to sell some of the lodges and possibly let some of them.  Does this affect the VAT treatment of construction?

I believe the planning allows people to reside at the park throughout the whole year - I think this has a bearing on the VAT treatment.

Also, does it matter if sold freehold or leasehold?

I note this previous post would seem to support my thinking http://www.accountingweb.co.uk/anyanswers/log-cabin-vat

Your thoughts welcome.

Comments
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Provided...

George Attazder |
George Attazder's picture

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blok |
blok's picture

Conflicting advice?

BKD |
BKD's picture

Apologies...

George Attazder |
George Attazder's picture

thanks for comments

hallsi |

No apologies required, George

BKD |
BKD's picture

Holoday homes

George Attazder |
George Attazder's picture

Client self building ?

uktaxpal |

Similar scenario?

Ken Howard |

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blok |
blok's picture

Yes that's right

Ken Howard |

Picking up blok's point...

George Attazder |
George Attazder's picture