This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Self build property: VAT question within LTD

ltd101
Posts:47
Joined:Sat Feb 16, 2013 9:54 am
Self build property: VAT question within LTD

Postby ltd101 » Sun Jun 14, 2015 7:52 pm

Property Investment co owns a large 3bed end of terrace property on a corner plot with large garden. Planning has just been granted to build a new dwelling from scratch on the land. As I understand it, new builds are VAT free, is this still applicable given its within a property LTD? Do I pay the builder VAT then reclaim? Is it just the bricks & mortar thats VAT free or does this include the finish (eg kitchen/bathroom etc) too?

section 44
Posts:4467
Joined:Thu Oct 30, 2008 12:47 pm

Re: Self build property: VAT question within LTD

Postby section 44 » Mon Jun 15, 2015 9:21 am

The construction services, and goods that are building materials that are provided therewith, to the company will be VAT free.

When the company sells the property it will be able to recover any VAT incurred by it to the extent that it is attributable to the property sale, other than any VAT incurred on goods that are not building materials.

ltd101
Posts:47
Joined:Sat Feb 16, 2013 9:54 am

Re: Self build property: VAT question within LTD

Postby ltd101 » Mon Jun 15, 2015 2:00 pm

Thank you so much section44, so I am crystal clear all you are referring to is the vat off eg the agents fees?

Also, again so I am clear, "goods that are building materials", does this mean the vat on the new kitchen or bathroom can be claimed back? Tks for confirming that the bricks and mortar can be


Return to “Property Taxation”

cron