VAT avoidance possible?

[akist]

Hello everyone,

We knocked most of our house down back in July 2020. Only one wall remained and no roof anywhere. Since then, and up to today, it has had little work done to it, there is currently no cover, no roof and not all the walls have been built. The property has of course been unoccupied since July 2020. We have very good photographic evidence of the progress (or lack of) in the past 18 months.

Would I be able to approach a VAT specialist accountant or expert to receive guidance in avoiding VAT for purchases already made or will be?

Many thanks

 

[Notch7]

Are you saying you want to be registered as a new build and be zero rated?

 

[akist]

I am not sure of the technicalities, forms to fill in, photos, applications? I want to avoid past and future VAT if possible. I am not sure if the tax man have a help line, I will take a look now.

 

[charliegolf]

When I built my house 26 years ago, you could have a single vat reclaim on the materials when you have completed. At that time, renovations were not included in the scheme. I seem to recall that the latter had now been included, so that's the start point for your research (HMRC). THEN, you have to find where your project fits in their view. If a wall or two is still standing, and to be included in the new build, it may be a reno.

Going back to the title, I think no, you have to pay vat. The question is whether you can get it back.

 

[bernardgreen]

I recall the building has to be vacant for 2 years before work starts.

https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708#section8

 

[jeds]

If you knocked your house down apart from just a wall, then what you rebuild will almost certainly (for planning purposes) be a new build. (which requires planning permission, by the way) A new build is zero rated for VAT. Just show the VATman a copy of your planning permission.

 

[motorbiking]

https://www.gov.uk/vat-building-new-home/eligibility

I don't think it qualifies