Hi,
I am considering flattening a house I own to rebuild 2 new units.
Is there a VAT angle here?
Could I set up a development/refurbishment business, register for VAT with a view to reclaiming all the VAT on any supplies during the process. There would be no output VAT per se but this could be arranged if a de minimus amount were required.
Replies (3)
Please login or register to join the discussion.
VAT on development
Sounds like you need to engage an accountant that knows about VAT to plan this carefully if you're not even sure about the VAT rate on new residential units. The slightest mis-understanding could be very costly to you. It's too complicated/risky to base your planning on posts to a website.
use an accountant
[quote=Oldmanwetmix]
Sounds like you need to engage an accountant that knows about VAT to plan this carefully if you're not even sure about the VAT rate on new residential units. The slightest mis-understanding could be very costly to you. It's too complicated/risky to base your planning on posts to a website
even the vat man looses the plot?
is it a commercial new build?
or a self build scheme?
be careful
Zero rating of new construction
You can zero rate, in principle, but, as per the previous comment, you will need to make sure that all angles are covered, so that the conditions for zero rating are properly fulfilled. You can check out Notice 708 to start with.