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Costs associated with building a house in the garden of an existing property
A client has received planning permission for a four-bedroomed dwelling in his garden. First the existing lender has agreed to allow them to sever the title upon receipt of a £50 000 deposit. Can readers advise on the tax implications of the deposit?
The land will then be sold to a new company and should be free of capital gains tax because it is within the limit for a garden plot. The client then intends to develop the house and the plot. The company will register for VAT claim back all input tax and will make a zero-rated supply of a four-bedroomed dwelling at the end of the project.
To clear the site ready for the building certain demolition and rebuilding work needs to be carried out on his house. This will involve demolishing an old garage and a room above it and the creation of a...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
