Share this content
5

VAT Situation for an Extension

Didn't find your answer?

There's a proposal to build an extension on to our reception area to create more space. We are VAT registered and the building hasn't opted to tax (to the best of everyone's knowledge).

We've no experience of VAT on building works, would we be charged VAT on the building costs (including architect's fees) and if so would we be able to reclaim anything?

Replies (5)

Please login or register to join the discussion.

Hallerud at Easter
By DJKL
29th Oct 2019 12:58

Do you use this reception area as your premises re your vat registered business? (pertinent re vat reclaim)

What is your tenure re the property? (Not a vat question)

What is the total spend? (capital goods considerations re vat)

Thanks (0)
Replying to DJKL:
avatar
By greenhat
29th Oct 2019 13:37

DJKL wrote:

Do you use this reception area as your premises re your vat registered business? (pertinent re vat reclaim)

What is your tenure re the property? (Not a vat question)

What is the total spend? (capital goods considerations re vat)

The reception is part of our VAT registered business. We're on a long peppercorn leasehold, about 85 years to run. Total spend say £100k + VAT.

Thanks (0)
Replying to greenhat:
Hallerud at Easter
By DJKL
29th Oct 2019 14:05

Well, on that basis I am not sure there are really any issues, however you really want one of our resident vat experts to pronounce on this ( I am certainly no vat expert) and for that sort of money we would (and do) pay a vat consultant to get written guidance on which we can rely.

Thanks (0)
avatar
By JoF
29th Oct 2019 14:15

I can recommend Les, a VAT consultant. His profile is here https://www.accountingweb.co.uk/profile/leshoward

Thanks (2)
chips_at_mattersey
By Les Howard
29th Oct 2019 16:31

Thanks to JoF for the introduction.
I would expect VAT to be recoverable, but the question over who owns what should be addressed too. Hopefully the landlord will be amenable to being part of the discussion.

Thanks (0)
Share this content