Definition of a dwelling amendment

HMRC have updated their VAT Notice 708. The latest amendment issued on 20th July 2018 has been released to include a clarification of the definition of a dwelling. Paragraph 2.1 has been amended to show that a dwelling can consist of more than one building.

The wording used by HMRC has to be applauded as it is very clear and concise, and I have been struggling to think of a different way to explain this clarification – as a result I have decided to quote it in full!

“A combination of buildings may form a single dwelling, provided they are designed to function together for that purpose. For example, where you have two buildings, one building may comprise a lounge and kitchen, and the other comprises the bedrooms and bathroom. The buildings must be constructed or converted under a single project and single planning consent.”

The last sentence is the key part, I recommend that any builder or contractor gets and retains a copy of the planning consent to confirm they are working on a single project and all their services being provided are covered by the single planning consent.

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