If we rebuild a house on our plot in a different location to the original building, in order to qualify for zero rating, do we need to demolish it before starting the build or can we do this when the building is reaching completion?

George Elphick

  • David Miller

    Hi George, I don’t know whether you ever got a response to your question but we have the same issue. I asked HMRC and they gave me a very long, unhelpful response, but referred me to VAT Notice 708. Para 3.2.1 says in part “”A qualifying building is constructed when: it is built from scratch, and, before construction starts, any pre-existing building is demolished completely to ground level (cellars, basements and the ‘slab’ at ground level may be retained)”

    I guess this means that you (and we) have to demolish first. One of the very many truly ridiculous HMRC rules which don’t benefit them at all but create enormous hassle for the tax-payer! Good luck with your project.

  • Ed Goodwin

    I am in a similar situation, but can demolish to ground level. Would I be able to use some of the existing foundations, since they are, by definition, below ground level?

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