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Where Taxpayers and Advisers Meet

VAT Reclaim DIY Self Build retaining outbuilding

Adrian80
Posts:1
Joined:Tue Feb 03, 2026 12:32 pm
VAT Reclaim DIY Self Build retaining outbuilding

Postby Adrian80 » Tue Feb 03, 2026 12:47 pm

Hi

I have been trawling the web for some clarity.

I want to demolish and rebuild a house , but keep a detached garage. I was assuming that it would be eligible for a VAT reclaim.
For more clarity, i currently have planning permission for an extension, but not complete demolition.

I was intending to go back to planning to get full permission for the demolition to enable the VAT reclaim

However, i am concerned about falling foul of the complete demolition rules.

This seems to be a little bit of a grey area.

I would have thought the situation was fairly common in residential and farming.

I called up HMRC asking for some guidance, they were less than helpful and would only say they would asses the claim at the end. I could write to them but i am not sure that this would be more productive.

I feel its pretty high risk approach to proceed without certainty as going back through planning will cause delays and incur additional expense.
Alternatively i have thought about splitting the plot, so it becomes clear the two areas are distinct. I admit this seems excessive, but if i need to spend money to save money it seems worthwhile.

Grateful if anyone has seen an appeal at the FTT or precedence.

thanks in advance

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