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Posted 3 months ago by Jeremy Alcock
We are starting a self build project for our new home and recognise we there are certain services and materials that are nil rated in terms of VAT for a self build. We are completely demolishing the existing house and clearing the site where the house was as we are planning to build the new house on the part of the majority of the same footprint of the existing house. Would the costs associated by a contractor demolishing the house be exempt from VAT?
Posted 2 months ago by HMRC Admin 20 Response
Hi,
Please refer to notice 708 section 3 here: 3. Zero rating the construction of new buildings
This details when supplies in relation to a new build may be zero rated at 0% VAT. In particular please look at section 3.3.4 regarding demolition.
Thank you.

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