Rebuild of Cricket Pavilion - VAT considerations

A local village cricket club pavilion was severely flood damaged in January 2023. The cricket club is a not for profit organisation and is not VAT registered as Income is below the VAT threshold. The pavilion will require to be demolished and a new pavilion built in it's place. This will be funded partially by insurance proceeds, with the rest of the funding procured through applying for grants and other fund raising activities. The potential imposition of significant Input VAT costs will mean fund raising will have to be increased to cover the cost of Vatable building and other supplies as there is no route to reclaim as not VAT registered. The question is what VAT advice / dispensations are available to this cricket club to negate this VAT Liability. There must be a precedence for not for profit and non VAT registered organisations in this situation. Any thoughts please?

Hi Zahir Mohammed,
 In order for relief of VAT to be applied on construction of a new building for charitable purpose, conditions need to be met.
Following guidance at section 14.7.4:
14. An explanation of dwellings, ‘relevant residential purpose’ and ‘relevant charitable purpose’
If these conditions are not met and the supply is made by a VAT registered business then VAT is applicable.
As you have stated your not registered for VAT and unable to recover, there is no other option of recovering this.
We can refer you to further guidance on how VAT effects charities here:
Goods or services supplied to charities (VAT Notice 701/58)
Thank you.