We are currently having a new house built by a commercial developer. After the house is built and the purchase contract is complete we wish to add a conservatory.
Can anybody tell me if the "No VAT" rule on a new build ceases immediately the newly built house is finished/purchased or is there some flexability.
TIA
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M
Mike Taylor
Only one way to confirm this and that is contact your local VAT office. As a contractor my belief is that once the contract is complete on a neew build then VAT is chargable after but if the order is placed before completion then probably (and I stress probably) it is VAT free.
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Dave Jones
Have a word with the developer, should be able to do it cheaper as will get a bigger discount with the window firm.
M
Mike
I think moving in has some bearing on it. Once you do I think VAT is always chargeable.
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Dave
That is part of the problem, the developers conservatory installer has quoted a price which is a bit ott, also they want a 25% deposit before order and they want an order 6 weeks before completion. So methinks I will organise something myself.
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Ed Sirett
I believe that it applies up to the day the completion certificate is issued, but I may be wrong. Any work done after that day will be repairs and enhancements and not qualify.
D
Dave Jones
3.5.4 Off site preparation, prefabricated buildings and building kits
The supply of a prefabricated building, building kit or prefabricated
components on a 'supply only' or 'supply and deliver only' basis is a supply of
goods and is not zero rated as a supply of services in the course of the
construction of a building - see paragraph 12.2.3.
The installation or erection of such goods is a supply in the course of
constructing the building and can be zero rated if the building will become one
that qualifies for zero rating. The liability of the goods will follow the normal
rules for building materials - see section 12.
So according to that they will be, but best to give the local VAT office a call and see what they say.
Taken from
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Dave
Thanks to all that replied, I will follow up your suggestions.
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Owain
Regardless of /when/ the claim is made, there can only be one claim for VAT refund made per dwelling, and that claim will be being made by the developer.
Owain
T
The Natural Philosopher
It finishes with teh BCO's completion certificate.
T
The Natural Philosopher
No. Its 'completion' and there is a little leeway to argue that work has been done since 'completion' that is vat deductible.
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