New queries: Barn conversion; Land transaction...

Barn conversion

My client is a builder and he has been asked to convert a barn into residential accommodation. My immediate thought was that such work would normally qualify for my client to charge VAT at the reduced 5% rate subject of course to the usual exclusions.

However my client has now informed me that the barn is actually joined to the customer’s main residence. As a consequence the conversion will in effect end up being an annexe to the main property.

I am now wondering whether this means that VAT should be charged at standard rate.

Can readers advise on this position and provide some guidance for future reference please?

Query 18 200 – Barney

Land transaction

At a very late stage one of our clients supplied information concerning a land transaction for the 2012 tax return. It then ...