Chichester Accountant and Bookkeeper

Call : 01243 201 401
Email :

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VAT Chargeable on Constructing New Buildings

If you carry out building or construction work on a building you would normally charge VAT at the standard rate.

But work on a new buildings is zero-rated - so you won't have to charge VAT on it

You can only zero-rate the work if certain conditions are met.

  • the type of building
  • the sort of building materials you're supplying to the customer
  • and whether the work you did is carried out before or after the building has been finished

 If you can zero-rate your work, this applies to both your labour and your materials costs.


So what houses or flats qualify for zero-rating?

A new house or flat will only qualify for zero-rating if it meets all of the following requirements:

  • it's self-contained living accommodation
  • it's separate from any other living accommodation - there aren't any internal doors or connections to other houses or flats
  • it can be used independently of any other property
  • there's proper planning permission in place for the building
  • it can be sold in its own right - it doesn't have to be sold along with any other property

For more inforation direct from HMRC please visit their website


So what is a new construction?

You're only considered to be building a new house or flat if it's genuinely new!

So if there was an existing building on the site it must have been demolished completely to ground level first.

Sometimes you may be able to zero-rate work that you carry out on an existing building if it's either:

  • a listed building
  • a scheduled monument

What materials can you zero-rate?

You can zero-rate most of the materials you use if you're building a new house or flat that qualifies for zero-rating

What counts as building materials for VAT purposes:

  • you need tools to fix or remove them
  • they're things that are normally included in a new house or flat
  • they're not finished or prefabricated furniture, or materials to make fitted furniture - but kitchen furniture is allowable
  • they aren't gas or electrical appliances - but heating and hot water appliances, environmental systems, safety and security systems and some other appliances are allowed
  • they aren't carpets or carpeting material - but wood or laminate flooring and linoleum are allowed



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B4Bookkeeping Ltd

Tel : 01243 201 401

  1 Lincoln House, Chichester Fields, Tangmere, Chichester, West Sussex, PO20 2FS
Company Reg Number : 9151684. VAT Reg Number: 192 380 988. MLR Reg : 12847995

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