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Where Taxpayers and Advisers Meet

New build demolition

KrisH
Posts: 1
Joined: Wed Jun 21, 2017 11:14 pm

New build demolition

Postby KrisH » Wed Jun 21, 2017 11:23 pm

We are building New build detached house to replace an old bungalow. It is a condition of planning consent that the original bungalow be demolished as soon as the house is complete
The new house and garage cannot be properly accessed until the bungalow is demolished as it is built very closely to it.
The demolition contractor says because the bungalow was not demolished Prior to the start of construction the demolition does not attract zero vat
Please advise
Many thanks

les35
Posts: 552
Joined: Wed Aug 06, 2008 3:09 pm

Re: New build demolition

Postby les35 » Thu Jun 22, 2017 9:32 am

The demolition of the existing structure is zero rated if it is part of the same contract as the new construction. Since the Planning Permission includes this condition, I would suggest zero rating does apply. But the Contractor may need more reassurance, with a more detailed review of the planning and contractual material.

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: New build demolition

Postby section 44 » Thu Jun 22, 2017 12:32 pm

The demolition of the existing structure is zero rated if it is part of the same contract as the new construction. Since the Planning Permission includes this condition, I would suggest zero rating does apply.
This sounds to me like you are opining on whether the demolition service is capable of being a zero-rated service, which I agree it is.

Whereas I wonder whether perhaps:
The demolition contractor says because the bungalow was not demolished Prior to the start of construction the demolition does not attract zero vat
is more to do with whether there is a new dwelling being constructed at all given that the "construction" work will be carried out while there is an existing building on the site


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