Definition of new build for VAT?
Definition of new build for VAT?
Author
Discussion

gareth h

Original Poster:

4,130 posts

251 months

Tuesday 2nd September 2025
quotequote all
This is a bit of a long shot, we are having an extension built, this involves knocking down an existing single storey extension and replacing it with a new 2 storey extension, anyway this can be interpreted as new build for VAT purposes?
TIA
G

Pistom

6,139 posts

180 months

Tuesday 2nd September 2025
quotequote all
It's 10 years since I've been involved in stuff like this so someone better qualified may come along but no.

New build means a new dwelling - not just an extension.

ConnectionError

2,191 posts

90 months

Tuesday 2nd September 2025
quotequote all
No

bobtail4x4

4,225 posts

130 months

Tuesday 2nd September 2025
quotequote all
Pistom said:
It's 10 years since I've been involved in stuff like this so someone better qualified may come along but no.

New build means a new dwelling - not just an extension.
this

Andeh1

7,454 posts

227 months

Tuesday 2nd September 2025
quotequote all
Nope, HMRC arnt stupid. All your paperwork for planning and building regs will define what you're building....and it will not show a new build. You could demolish 95% of your house, but that final 5% will prevent it being classed as a new build.

TA14

13,985 posts

279 months

Tuesday 2nd September 2025
quotequote all
Some people have tried building an extension without knocking through so that the new building is VAT free and then knock through later - that doesn't work either smile

Panamax

7,726 posts

55 months

Tuesday 2nd September 2025
quotequote all
ConnectionError said:
No
and No.

You need to demolish and rebuild. There's no point trying to be clever on this because it's astoundingly simple for HMRC to look at your planning application and see what it said. There's effectively no wriggle room.

Little Lofty

3,765 posts

172 months

Tuesday 2nd September 2025
quotequote all
I’m renovating a house at the moment that has been empty for 15 years, it should qualify for 5% vat, unfortunately the owner was paying council tax for that whole period so I cannot prove it’s been empty. I will be spending £100k on it so it would have been quite a saving.

gareth h

Original Poster:

4,130 posts

251 months

Wednesday 3rd September 2025
quotequote all
Thanks all, I thought that was the case, but somebody down the pub …….smile