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Readers’ forum: Can builder recover VAT retroactively

27 November 2023
Issue: 4915 / Categories: Forum & Feedback , VAT
Builder Bob

Builder Bob purchased an area of land and started building a residential building. Builder Bob started construction before getting full permission.

At a VAT control visit he was told correctly that he could not reclaim VAT on materials and costs as planning permission had not been obtained.

Bob now has his planning permission and therefore wants to recover the VAT.

Is this possible? A quick search of the internet would seem to suggest that he cannot as permission was not granted at the time that he carried out the work.

However reading VATA 1994 Sch 8 Group 5 condition d of the note 2 says ‘statutory planning consent has been granted in respect of that dwelling and its construction or conversion has been carried out in accordance with that consent’.

Therefore if by the time that Bob sells the property he has...

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