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A barn is being converted into residential accommodation. It was thought that VAT at the reduced rate of 5% would apply to this work. However, the barn is attached to the customer’s house
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 guidance for future reference please?
Query 18 200 – Barney
Reply from David Peirson FW Smith Riches & Co
Where qualifying services (and supply of associated building materials) are supplied as part of a qualifying conversion ...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
