Nicks permitted development

[S J H]

Maybe,i known them for a long while.the workman ship is brilliant.the builder had some other subbies build another house during the summer and they were alot faster but the quality of workmanship was pretty poor to be honest and i would not want them working for me.the subbies who work on big sites dont do the tidiest work.as for chopping in diggers,the volvo i currently got has just started its fourth year and will probably get changed when i finished this project.dont pay to keep them too long.mini diggers are at their limit all the time so i change around 1000 hours.
Nick...

I think there's a different mentality on site.

Could you let me know when you come to change it? That sort of size looks spot on for us. Would you have the same size again?

 

[nick...]

Can you recover the vat on your project as new build or not?

Dont think i recover vat but only 5% so alot better than 20
Nick...

 

[nick...]

I think there's a different mentality on site.

Could you let me know when you come to change it? That sort of size looks spot on for us. Would you have the same size again?

Yes i will.i have a reputation for seeing after my stuff.the counterweight is still unmarked after 3 years.the one i have now is a ec18c.may have same again or an ec20d.these are only about 70kg more and alot more powerful,and expensive
Nick...

 

[spikeislander]

Dont think i recover vat but only 5% so alot better than 20
Nick...

Don't you get full vat relief for self build? I am just about to start mine in spring, just putting slightly revised plans in. Did they allow you any variation's on the original plans as I didn't think we had a chance so really rushed some OK plans in.

 

[rob1]

Don't you get full vat relief for self build? I am just about to start mine in spring, just putting slightly revised plans in. Did they allow you any variation's on the original plans as I didn't think we had a chance so really rushed some OK plans in.

I claimed all mine back when we did our conversion ten years ago, just added it to my normal return as we went along, as I understood the VAT at the time any new build qualified but additions/extensions were 5%, might have got that wrong but too late now. I have kept all bills etc so if there ever was a problem I can account for every penny

 

[d williams]

I claimed all mine back when we did our conversion ten years ago, just added it to my normal return as we went along, as I understood the VAT at the time any new build qualified but additions/extensions were 5%, might have got that wrong but too late now. I have kept all bills etc so if there ever was a problem I can account for every penny

I think its full vat refund on new build and part on referb extension

 

[nick...]

My accountant printed out a letter that ive handed out stating 5% vat and everyone gone along with it.ill have to ask if i can claim it back at the end.ill take advise
Nick...

 

[Netherfield]

Makes a lot more sense after looking at the plans.

 

[tim@marford]

My accountant printed out a letter that ive handed out stating 5% vat and everyone gone along with it.ill have to ask if i can claim it back at the end.ill take advise
Nick...

Has your accountant painted a picture of how this project will fit your tax position? ISTR that you were considering selling one and living in the other.
Judging by the level of interest in this thread, many of us are seriously considering such projects but, has anyone researched the tax consequences? I ran some budget figures by our accountants and they got very uncomfortable about capital gains/income tax thresholds etc. Entrepreneurs Relief seems possible but you must give up a portion of your current business to claim:-(

 

[nickf]

My accountant printed out a letter that ive handed out stating 5% vat and everyone gone along with it.ill have to ask if i can claim it back at the end.ill take advise
Nick...

I could not claim back the 5% at the end of my project. Bear in mind that landscaping costs are subject to 20% VAT. Also if you buy any materials yourself they will be subject to 20% VAT. The 5% rate only applies if a subcontractor supplies and fits the materials.

I have just finished my first Permitted Development, a WWII barrack block which had been used for storing farm stuff and loading cattle for the last 30 years converted into 2 x 1 bedroom houses:

 

[chaffcutter]

Nice job - proves you can make a silk purse from a sows ear !

We are doing a barn conversion for ourselves to live in after leaving the farmhouse, our accountants advice was to do it in our joint names as it would not qualify as another farmhouse, we are working on 5% vat and can claim it back at the end as a self-build, we did the same on an earlier new build too, no problem but it has to be done 'separate' from the farm business.

 

[nick...]

Im not going to live in either property.taken 33 years to get my home how i want it.will definatly sell one and rent one for a year then probably sell that too.i did consider doing it myself but according to accountant id get screwed by hmrc for between 45/48%tax as id be classed as a property devoloper.as i got a builder doing it ill get away with 25%.at my age i cant see the point of renting one long term.if i make 10k a year id pay 40% tax as its unearned income and get left with 6000.im 53 no dependants and no dept and live on very little so i may aswell have the money to invest or spend.sorry if this sounds arrogant.on a seperat note im amazed at the interest in this project
Nick...

 

[Forever Fendt]

Im not going to live in either property.taken 33 years to get my home how i want it.will definatly sell one and rent one for a year then probably sell that too.i did consider doing it myself but according to accountant id get screwed by hmrc for between 45/48%tax as id be classed as a property devoloper.as i got a builder doing it ill get away with 25%.at my age i cant see the point of renting one long term.if i make 10k a year id pay 40% tax as its unearned income and get left with 6000.im 53 no dependants and no dept and live on very little so i may aswell have the money to invest or spend.sorry if this sounds arrogant.on a seperat note im amazed at the interest in this project
Nick...

how long would you have to live in one of the conversions for it to be your main residence and pay no capital gains tax should you sell, you could leave your main house empty and pay the community charge

 

[nick...]

I think its 12 months.i wont be leaving where i live for that long.if i had wanted to do the place for myself id have had the whole building for myself.40x10metres would be great
Nick...

 

[rob1]

how long would you have to live in one of the conversions for it to be your main residence and pay no capital gains tax should you sell, you could leave your main house empty and pay the community charge

Three years to qualify and can still rent the other one out, rent would qualify as part of income so for three years could upgrade kit to make the business make little profit and use the rent as part of normal taxable income.

Edit .brain fade as you already own it the three years bit may not apply as the rules have changed I think so ignore what I said

 

[Forever Fendt]

Three years to qualify and can still rent the other one out, rent would qualify as part of income so for three years could upgrade kit to make the business make little profit and use the rent as part of normal taxable income

so that would be a good plan then instead of paying a load of tax anyway who would know where you are living so don't see a problem or am i missing something

 

[nickf]

Mine are owned by my Ltd company and the company paid for the conversion costs. I am keeping both and renting them out, tenants moving in as I write. Rent will just go into the company income for corporation taxation purposes I think.

I have no plans to sell them in my lifetime and they will have paid for themselves within 10 years.

I try not to let the tax tail wag the investment dog but it is a sad fact of life and drives me up the wall!

 

[bobk]

I could not claim back the 5% at the end of my project. Bear in mind that landscaping costs are subject to 20% VAT. Also if you buy any materials yourself they will be subject to 20% VAT. The 5% rate only applies if a subcontractor supplies and fits the materials.

I have just finished my first Permitted Development, a WWII barrack block which had been used for storing farm stuff and loading cattle for the last 30 years converted into 2 x 1 bedroom houses:

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You didn't by any chance work in a mortuary in a previous life

 

[chaffcutter]

If you move into somewhere as long as you do so properly, ie it is your address for the Electoral Roll, Council tax, Tax return etc then you could get away with less than a year as far a CGT is concerned according to our accountant.

 

[nick...]

Got both oversites filled today with 8/10 inches crushed concrete and topped up with runnings/screened hoggin to get to desired height.will compact it all tomorrow and have building control coming to inspect it all.few drains put in oversite too.will all be ready to concrete early next week then.have used in excess of 130 tons of crushed concrete in oversites and driveway so far.good job its what i had crushed that came out of building originally.its currently 20.56 to buy ex pit locally.
Nick...