Reduced rate VAT for house renovation

Flakey

I'm hoping there may be a VAT 'geek' out there who can help.
I have tried the HMRC we chat who have had me going round in circles.
To cut a long story short we are extending a house into a derelict building next door which was once a house but has been used for storage by the previous owners for many years.
I understand that reduced rate VAT is chargeable on conversions but as only part of the building is being converted would we be able to ask our builder to reduce rate the entire conversion or even reduce rate the part for the store?
I have looked at VAT Notice 708 and each time come to different conclusion. HMRC just keep referring me back to it.
Thanks.

Stevey198321

Best to ask an accountant or get your builder to ask his

System

It's quite a complex situation - what you need to do is get hmrc to confirm in writing that the work can be charged at the lower rate, I can't remember exactly how we managed to get it confirmed before, but even with a letter from hmrc, the builder insisted on getting his accountant to confirm it.
Took a long time to sort out - project was nearly finished before it was sorted

Flakey

Thanks
I can't afford an accountant - we are trying to do the conversion on a VERY tight budget, hence savings on VAT would make a huge difference.
If there is a glimmer of hope of reducing the VAT bill I will pursue it but I'm about ready to give up. As I said I've gone around in circles so far - any thoughts/advice from someone with similar experience would be appreciated.

System

A chat with an accountant shouldn't blow your budget, if it's that tight a budget then you seriously need to make sure you have enough to allow a reasonable contingency as conversions can end up with a few unexpected costs...
Potential savings on vat should be a bonus in the budget and not the thing that makes the finances stack up

ryder72

Get it in writing from HMRC. HMRC deliberately refer you back to the notice as it is open to interpretation and after the event they may decide to interpret it differently to you.

An accountants interpretation isnt binding either. It may clarify but its still an opinion.