Tax on New Build but built in part on existing

[Taylor48]

I'm a self employed Architectural Consultant & I'd like to brush up on tax advice that I'm sometimes asked by clients with respect to zero rated tax on new build homes for individuals.

One query I'd like explained is, when a new build home is being built on a part of a demolished existing house, does the zero rating still apply to all, or part or not at all.

A case example a client has is as follows:-
The existing property comprises of a large double garage with single storey flat roof apartment above. The existing stone walls are structurally sound, so they want to demolish the apartment above & build a two storey small 2 bed property above in timber frame. Furthermore, the existing stone walls act as retaining walls at the rear, i.e. the garage is built into a hill side, so the rear garage walls are underground, but slope down to road level at the front entrance to the garage.

Therefore how does the tax situation apply in the above case.

Many thanks,
Clayton.

[section 44]

Assuming that the property has not been disused for 2 years, the work would all be standard-rated (i.e. not reduced-rated or zero-rated) because you are simply doing work to an existing single dwelling.

[Taylor48]

Assuming that the property has not been disused for 2 years, the work would all be standard-rated (i.e. not reduced-rated or zero-rated) because you are simply doing work to an existing single dwelling.

Thanks for your advice, it is most appreciated, just picking up on the vacated situation you mentioned. The existing building as owned by our client was used to provide a basic level of accommodation up until 2006/2007. The building was then vacated due to a roof leak & has
not been occupied for any form of habitable means since. Currently the building is in a poor state
of repair which will remain so until the building works commense.

FYI, our planning application was approved by the L.A. but only with respect to being a new build, i.e. not a householder alteration. Thus far we were asked to pay £335.00 for a new build application instead of £150.00 for alteration works. I'm not too sure if this has an influence on the tax situation, but nevertheless, I thought it best all the facts were outlined.

Many thanks,
Clayton.