HMRC has published Revenue and Customs Brief 9/2016, on the VAT treatment of conversions of non-residential buildings into dwellings under permitted development rights, to clarify its policy on where an individual planning application is not necessary because statutory planning consent has been granted though permitted development rights (PDRs). The introduction of PDRs in relation to the conversion of certain non-residential buildings into dwellings means that some developers will have difficulty in meeting the conditions for VAT zero-rating or reduced rates to apply, which currently require statutory planning consent. Claims by DIY house builders will be similarly affected. The brief sets out the evidence that HMRC will still require evidence that the work is lawful, in the form of correspondence with the local planning authority. See www.bit.ly/1TtiIIQ.
HMRC has published Revenue and Customs Brief 9/2016, on the VAT treatment of conversions of non-residential buildings into dwellings under permitted development rights, to clarify its policy on where an individual planning application is not necessary because statutory planning consent has been granted though permitted development rights (PDRs). The introduction of PDRs in relation to the conversion of certain non-residential buildings into dwellings means that some developers will have difficulty in meeting the conditions for VAT zero-rating or reduced rates to apply, which currently require statutory planning consent. Claims by DIY house builders will be similarly affected. The brief sets out the evidence that HMRC will still require evidence that the work is lawful, in the form of correspondence with the local planning authority. See www.bit.ly/1TtiIIQ.
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