Readers’ forum: Planning permission and VAT issues on barn conversion

One of our clients has got planning permission to convert a big barn he owns in his garden into a residential property. However the planning consent says that it can only be occupied by a person for a maximum period of eight weeks. The barn must therefore be used for furnished holiday lets.

The client is appealing the planning decision. He is seeking to obtain full residential status so that the property can be rented out on a buy-to-let basis.

However some building work has already started with trunking and pipework being laid to facilitate a power and water supply. I have looked at HMRC’s VAT notices and am confused on three of the following issues:

• Can the 5% VAT rate apply to building work and materials provided by builders as part of their work or is the eight-week stay period a problem?
• Presumably my client can...