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Submit plansWe want to buy a small bungalow that has detailed planning permission for a big extension (double the size of the house). Can you tell me what the VAT reclaim situation is on such a project? We have been told that extensions do not qualify for reclaims.
I’m afraid your information is correct. You can only reclaim VAT for an extension if you are creating an additional dwelling, such as building a flat on top of flat roof. Call HM Revenue & Customs’ helpline (0845 010 9000) and ask for a free copy of its booklet VAT Refunds for Do-it-Yourself Builders and Converters, or go to its website (www.hmrc.gov.uk) to download the relevant information.
