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.