The key point here is that the zero-rate for the construction of
a brand new house, or block of flats, is subject to conditions. We
don't have enough space here for a detailed explanation of all
the issues (and to be frank, not everyone shares our appetite for
the finer details of VAT) but here are some key points that can
cause problems for builders and their clients.
As a reminder, zero-rating applies to most services (but not
those of Architects, surveyors, consultants and supervisors)
in the course of, construction of
a qualifying dwelling plus building
materials installed by the contractor.
"In the course of" can cause some
complications for services provided before construction starts,
e.g. the demolition of structures already on site, or the provision
of site infrastructure; or services after a building is complete
(e.g. snagging) and may or may not be zero-rated depending on the
facts.
