We are currently looking at the possibility of demolishing an existing bungalow on our property and building two new detached bungalows. We currently live in the existing, to be demolished, bungalow (no. 35) and aim to move into the new, no. 35A, bungalow when its completed.
As I understand I should be able to zero rate the VAT on the 35A property build as it is a self-build. What would the VAT implications on the rebuild of no. 35 be? Could that be zero rated?
Secondly as I am to move from 35 to 35A would the sale of 35 be free of CGT? I understand this would normally be the case, but as 35 would have been rebuilt could this cause issues?
Is there anything else to take into consideration?