Vat reclaim on AHA farmhouse renovation?

[exmoor dave]

After abit of advice,
We are embarking on the renovation of the farmhouse which forms part of the AHA tenancy.

We have already had the discussions with our landlord over who is responsible (who pays!) for what.

What I know need to find out is what, if any, VAT is reclaimable, since the house is integral to the tenancy, i.e we have to live in the house as part of the tenancy.

A chartered accountant friend of mine 'thought' 70% of the vat could be reclaimed but wasn't 100% sure.

I've asked a land agent too but he was even less sure.


Any help much appreciated

Cheers
Dave

 

[Still Farming]

Don't spend on landlords property possibly???

 

[Tamar]

70 % is correct.................... but if your tenancy stipulates that you HAVE to live in the house, try for 100%.

The worst that can happen is you have to pay 30% back !!

 

[Still Farming]

Insulation and eco stuff maybe 5% or zero too??

 

[exmoor dave]

70 % is correct.................... but if your tenancy stipulates that you HAVE to live in the house, try for 100%.

The worst that can happen is you have to pay 30% back !!

Ok thanks,

Abit of research suggests 40 - 70%, on 'structural' repairs but not alterations.

So i would hazard that we could do do most of the works at 70% as they would be repairs..... a absolute load of plaster work!!

But a additional small ensuite would be a improvement/ alteration.
Guessing carpets probably are a stretch for a reclaim

 

[exmoor dave]

Don't spend on landlords property possibly???

Sorry should have put some more info-

AhA succession tenancy, so likely our lifetimes here (not quite 40 yet) and hopefully another generation if they so wished to farm.

House previously occupied by 3 single blokes, (dad and my 2 brothers), no improvement in best part of 20yrs..... so it's abit grime.

We have 3 kids under 2.5yrs old, so not spending money to live in a half reasonable house isn't a option

 

[Tamar]

An ensuite can still be at 70% according to my accountant

Obviously the carpet was for the farm office !

 

[Tamar]

We have 3 kids under 2.5yrs old, so not spending money to live in a half reasonable house isn't a option

Not sure you can put a vesectomy against tax................ but an elasticater ring on the other hand......

 

[exmoor dave]

Insulation and eco stuff maybe 5% or zero too??

To give my Landlord their due, they have put in a biomass boiler and central heating 4yrs ago
And changed windows from single glazing to double glazing throughout.

And offered to put in aload more loft insulation at the end of the works.

But any additional eco works such as internal insulation would be on us.

 

[exmoor dave]

Not sure you can put a vesectomy against tax................ but an elasticater ring on the other hand......

The clipfitter over on the livestock section is meant to be less painfull

 

[Still Farming]

To give my Landlord their due, they have put in a biomass boiler and central heating 4yrs ago
And changed windows from single glazing to double glazing throughout.

And offered to put in aload more loft insulation at the end of the works.

But any additional eco works such as internal insulation would be on us.

Shoved rent up too is it???

 

[exmoor dave]

Shoved rent up too is it???

Not as of yet,
I made a robust case of why the house should be heated.... and why that heat should be kept in.

No real investment in the house prior to that for a very long time.

 

[zero]

Any insulation work on renovations is vat free at the moment. And theres alot of work involved in removing the old plaster so the new insulation can be fitted........

 

[ajcc]

Good luck to you and yours @exmoor dave there’s a lot of good with your landlord but stay aware and watch your back.
For an analogy think defective pto guard or weak handbrake ratchet spring. . . . stay aware but trust them totally at your peril. ( sorry bit off topic)

 

[exmoor dave]

Good luck to you and yours @exmoor dave there’s a lot of good with your landlord but stay aware and watch your back.
For an analogy think defective pto guard or weak handbrake ratchet spring. . . . stay aware but trust them totally at your peril. ( sorry bit off topic)

Oh I know!

 

[PSQ]

So i would hazard that we could do do most of the works at 70% as they would be repairs..... a absolute load of plaster work!!

But a additional small ensuite would be a improvement/ alteration.
Guessing carpets probably are a stretch for a reclaim

Surely you're replacing an existing ensuite, even if it was historically just a washstand and a pot under the bed.

And carpets count for any room used as part of the business, so if you have a VAT inspection make sure you lay each years books out in a different room in the house, and offer him / her / 'they' a coffee in the kitchen.

 

[Still Farming]

Surely you're replacing an existing ensuite, even if it was historically just a washstand and a pot under the bed.

And carpets count for any room used as part of the business, so if you have a VAT inspection make sure you lay each years books out in a different room in the house, and offer him / her / 'they' a coffee in the kitchen.

Taken as bride if you offer refreshments allegedly???

 

[Henarar]

It will be a % of the vat that you can get back as its part of the business, accountant will tell you how much in a quick phone call if they are any good

 

[PSQ]

Taken as bride if you offer refreshments allegedly???

Perhaps an apocryphal tale, but I did hear of a Lancashire farmers wife who claimed for her conservatory, and was pulled up during a VAT inspection in the same conservatory.
"But it's not being used as part of the business!" said the inspector, to which the lady presented him with a bill for £6 for 3 cups of coffee and said "yes it is".

 

[Northern territory]

Accountant told me a third on materials, currently 2 months into a big renovation