We are about to start a bungalow renovation and conversion of an adjacent barn, linked with new build entrance to form one residence. Which VAT refund category would we match?

  • Mark Brinkley

    It’s not good to have the tax tail wag the dog, but it sounds to me as if this would qualify as a renovation, rather than a new build or a conversion, and thus might be treated as a standard rated project on which you would be liable for 20% VAT. The key is the "bungalow renovation" which on its own would make the project a renovation, regardless of all the other elements. Just how important is the bungalow to the project as a whole and how much of it needs to be renovated? Might it not be a better idea to demolish the bungalow entirely and thus recategorise the whole job as new build?

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