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.

VAT Guides

VAT Questions and Answers

VAT – What is VAT?

VAT on Business Entertaining

VAT on Conversions

HMRC is Tackling Online VAT Fraud

 

Related News Articles

Mileage Tax Relief Guide

Guide to Claiming Tax Relief on Mileage Expenses (Where Reimbursed Below HMRC Rates) Step 1: Confirm Eligibility You may claim tax relief if: - The mileage relates strictly to business travel (not ordinary commuting). - You are using your own vehicle. - Your employer reimburses you below the HMRC Approved Mileage Allowance Payments (AMAP): -…

Government to Raise Income Threshold for Self-Assessment Reporting and Launch Simple Online Tax Payment System

Move expected to reduce administrative burdens for up to 300,000 taxpayers The Government has announced its intention to raise the income threshold at which individuals are required to register for Self-Assessment. This change will affect taxpayers with low levels of trading, property, or miscellaneous income and forms part of a broader package aimed at simplifying…

Mandatory Real-Time Reporting of Benefits in Kind Delayed Until April 2027

HMRC delays mandatory payrolling of most employee benefits by one year HM Revenue & Customs (HMRC) has confirmed a 12-month delay in the implementation of mandatory real-time reporting for most benefits in kind (BiKs). Initially expected to come into force in April 2026, the requirement will now apply from April 2027. This extension follows feedback…