If a building (in this case a small barn) is converted to one single property - with the intention of then using it for furnished holiday letting:
1) I think I should be able to issue a certificate saying the development is eligible to be invoiced at the reduced rate of 5%
2) I cannot reclaim the VAT under the DIY housebuilders scheme as I intend to use the building for business, but:
3) As I am registered for VAT for another commercial building, I should be able to reclaim VAT on this conversion - but then of course my FHL letting income would be VATable.
Am I right on each count?