I act for an individual who has inherited a derelict property which he wishes to demolish and replace with a new house which, on completion, he will rent out as a private residence. I understand that most of the building cost would normally be zero rated but I would like to confirm that the fact that the property will remain in my client's ownership as an investment will not jeapordise the zero rated status of the build.
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The investment arrangement will not jeopardise zero-rating.
Do make sure the planning permission explicitly shows that the existing structure will be demolished; otherwise the zero-rating will be at risk.