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Q&As
Can I reclaim VAT on my extension?
When having a structural survey carried out for a large extension, the surveyor discovered that the footings of my original dwelling were unsuitable. As a result, about 95% of the property was knocked down and new footings were constructed. The only parts still standing are a relatively recent extension and two small corner walls. If I demolish those two small walls, will my project qualify for the new build VAT reclaim?
One Answer
As it stands, your paper trail shows your project as an extension which does not qualify as a zero-rated VAT project. Qualifying as a zero-rated VAT project would allow you to make a VAT reclaim at the end of the build on items purely purchased and tradespeople.
You are almost at the point of qualifying as a knock-down and rebuild is treated as a new build which qualifies for zero VAT. So, in this instance, the extension and the two corners would have to come down to qualify.
However, even then, as your paper trail still shows your project as an extension, you’d require a letter from the local planning authority stating that they are happy to treat this as a new build. You can then knock down the remaining walls, or submit a new planning application to the local authority for a replacement dwelling.
If you manage to get a letter (not an email) from the local planning authority advising they are happy for you to proceed, I still suggest taking photographic evidence of the works.