Does the Self Build Zero-Rating for VAT Apply to My Studio?

18 October 2021
by joe kwaterski

After close on nine years, we have finally received planning permission for a replacement dwelling.
The approval includes permission to convert the existing garage into a studio for my personal use and allows for a new three-bay garage to be built as part of the approval.
As the new build does not attract VAT, would that include my studio? And what if I embark upon the studio immediately and the replacement dwelling in the spring of next year?

One Answer

  1. Gerry Myton - HW Fisher says:

    Hi Joe,

    It’s difficult to answer without seeing your plans or the permission, but generally:

    The new replacement dwelling can be zero rated, provided the existing dwelling has been completely demolished. The construction of the new three-bay garage would also qualify for zero rating provided its construction is carried out at the same time as the construction of the new replacement dwelling.

    However, the conversion of the existing garage would be standard rated. The situation we have here is a conversion of a garage into a studio, therefore zero rating doesn’t apply.

    Gerry Myton (HW Fisher)

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