VAT on new buildings

[james7]

We are working on a budget to a erect a new general-purpose building and wonder if anybody could help me with one aspect of this.

I know that there is no longer any AIA allowance on farm buildings as they are now classified as an asset and its assumed that they could be sold on as such.

If I buy an asset such as a field or small piece of land with a building on it there is no VAT to pay, also, if I erect a new build domestic dwelling the VAT can be reclaimed .

So logic would say that the VAT charged on a new general purpose building would be reclaimable, can anybody confirm that or point me to any information on this subject ?

Many thanks in anticipation.

 

[Nearly]

VAT can be reclaimed.
Never had it questioned.

 

[bigw]

Yes VAT can be reclaimed. Could it be a repair as opposed to a new building as repairs qualify for tax relief.

 

[Nearly]

Yes VAT can be reclaimed. Could it be a repair as opposed to a new building as repairs qualify for tax relief.

Farm secretary is saying lots of people are declaring new buildings as such, rather than repairs, this year. Customers saying might as well because we're not paying tax for a few years.

 

[Blue.]

Better off being a silage clamp or a muck store.

 

[Exfarmer]

IT can definitely be reclaimed , but f you ever sell it will need accounting for.
If you do sell in the future you will need to account for it but written down over 20 years?

 

[rob1]

IT can definitely be reclaimed , but f you ever sell it will need accounting for.
If you do sell in the future you will need to account for it but written down over 20 years?

If you rent it out you need to charge VAT on the rent or pay back the percentage left from the write of period, of course you might not have claimed the VAT back when you put it up and may not have the accounts from more than 7 years ago to check

 

[james7]

Thank you so very much for your help just what I needed to know.

Just out of interest has anybody had to do an archaeological dig to comply with planning regulations when constructing a new farm building.?

If so, what did it consist of ?

 

[marshfarmer]

Thank you so very much for your help just what I needed to know.

Just out of interest has anybody had to do an archaeological dig to comply with planning regulations when constructing a new farm building.?

If so, what did it consist of ?

I got a watching brief for one, so all the time we are digging I have to have someone here £250/day. Llow it.

 

[Exfarmer]

Normally this will consist of having a couple of trenches dug across the site, then having it inspected.
if they see anything they will as Marsh says then want somebody inspecting during all the ground clearance works.
hopefully they do not dig up any asbestos from previous work

 

[marshfarmer]

Not in my case, nothing has been recorded in my area, so they set a watchin brief for the whole job rather than the trenches as you say. It's all academic as they can go swivel

 

[james7]

Wow.... That could work out costly. If planning to do some of the work yourself on a when I have time basis, it would work out cheaper to get a groundwork company in to do it in a day. Would this watching chappie be there 10 hours in a day?

Would that be on just the planning permission part. ie. The building and a 3 mtr apron or would it include the drive to the shed which be maybe hardcore.?

 

[Exfarmer]

In my case a garage, built in a known area for archeology, they just called round same time as building control to inspect the footings 10 minutes and he was happy

 

[marshfarmer]

Don't think they always insist on a watching brief, in my case there is a mark in the field from aerial images, it's an old boundary, think that's what excited them, I'm only stripping topsoil and pushing it out a few 100m's away. Dig it out then get them to look, what are they going to do, just plead ignorant. Not enough money in the job to worry about finding two George IV pennies.

 

[Forever Fendt]

We are working on a budget to a erect a new general-purpose building and wonder if anybody could help me with one aspect of this.

I know that there is no longer any AIA allowance on farm buildings as they are now classified as an asset and its assumed that they could be sold on as such.

If I buy an asset such as a field or small piece of land with a building on it there is no VAT to pay, also, if I erect a new build domestic dwelling the VAT can be reclaimed .

So logic would say that the VAT charged on a new general purpose building would be reclaimable, can anybody confirm that or point me to any information on this subject ?

Many thanks in anticipation.

you will need to be vat registered and if you rent out or sell on in the future you will need to complete a opt to tax form relating to the property but it will depend on the use of the land and if it can be justified as agriculture