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Obtaining planning permission: Timing is everything

By Andrew Needham, June 2021

Andrew Needham looks at the importance of obtaining planning permission before starting work on a residential development and a potential VAT trap. 

The construction of new residential property is zero-rated, and builders and developers take for granted that the supply of building services in connection with the construction of new residential property is automatically zero-rated. 

However, for a building development to be undertaken legally, planning permission must have been obtained. 

Planning permission 

The construction of new residential property is zero-rated; but if planning permission has not been obtained, HMRC has argued that it is not legally a new residential construction but just the supply of building services, which in lieu of planning permission would be standard-rated.  

This point

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