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Vat reclaim on demolition for new build

Vat claim under new build

Didn't find your answer?

Hi all

we have planning permission for a new build plot which insisted the front facade of the original building had to be retained

unfortunately it collapsed and emergency demolition had to be carried out to make the site safe

my question is - is the vat on the emergency demolition reclaimable under the new build vat rules?

I've read vat notice 708 etc and am just not sure!

If anyone has experience of this and can give me any pointers I would be extremely grateful

thanks

monty

 

Replies (5)

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Hallerud at Easter
By DJKL
13th Jul 2020 15:08

What were you proposing to build under the old planning? (Commercial/dwellings?)

Do you now need to obtain a new planning permission or rebuild the elevation to how it was?

Are you sure, whilst the requirement to retain the elevation was there, that this actually was a New Build?

https://www.gov.uk/guidance/construction-services-and-zero-rated-relief-...

Thanks (1)
RLI
By lionofludesch
13th Jul 2020 15:15

Well, it's a ground level new build now.

I vote claim.

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Replying to lionofludesch:
Hallerud at Easter
By DJKL
13th Jul 2020 16:13

May not be- depending on how the elevation being retained is dealt with in the planning it may right now be a site with effectively no planning permission, so it could be nothing can be built without either reinstating elevation or getting a new PP.

All depends what sort of site and why elevation retention was needed in first place, maybe some clues re listing or similar might make matters clearer.

If it was as easy as knocking over a wall -oops - and then building all of us would be doing that, working with retained parts is generally far less profitable. We actually had one site that got turned uneconomic because of insistence a gate arch, a single storey building and a a fire damaged building with a tower were all retained.

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chips_at_mattersey
By Les Howard
13th Jul 2020 16:14

The emergency demolition should be zero rated, as a supply in the course of construction of a new dwelling. If the contractor does charge VAT, it is not eligible under the DIY scheme.

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avatar
By monty pezat
13th Jul 2020 17:25

Hi all, thanks for your prompt replies
The original facade under the original planning was to be retained as it is a conservation area
This is the wall that collapsed and new planning has been submitted and we have been told that it is highly likely that it will be agreed as a new build ( though of course that is no guarantee) and we will be re-instating the wall as it was
This is what I’m basing the question on ie it will be agreed as a new build

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