VAT liability – demolition and new builds Housing Association - VAT Liabilities

The client

Our client was involved in a dispute with a contractor over the VAT liability of demolition of an existing building and the construction of a new apartment block. Under the same contract, the contractor took care of both the demolition and construction, and believed that the demolition is subject to VAT.

Our success

After viewing the original tender documents, we found that the original agreement included both the demolition and construction works, and were therefore all part of one single project.

This meant that the project was zero rated, and there was no VAT owed to the contractor.

Involved in a similar dispute?

If you have hired a contractor to carry out building or demolition work, and there is a disagreement over VAT liabilities, contact our expert team for advice. You can call our free helpline on 0161 477 6600 or contact us via email and one of our advisors will be in touch.

Useful Information

Watch Our Videos

Get the vital information you need quickly and easily by watching one of our guidance videos - topics include VAT assessments and penalties, VAT for charities, and maximising VAT recovery.

View Videos