VAT on building work, and council tax whilst living in annexe

tegmim

We live in a farm cottage with several outbuildings. The main house wasn't really habitable, so we converted a barn to use temporarily whilst doing the building work (rather than getting a static caravan) which will then become an annexe for dependent relatives. However, we had a disaster with the first builder meaning the whole property stopped being habitable (he pulled down the kitchen and bathroom, and tore a chunk out the roof, and ripped out the plastering, leaving just a shell of four rooms). We then had to get another builder to repair it, and a year on it is soon going to be habitable.

In the meanwhile we've been paying full council tax on the house, and the inspectors have tried to put separate council tax on the barn. And we have paid VAT on the building work.

Is there any way to argue that the council tax should have been reduced whilst we could only live in the annexe? Is there any way to argue that the building qualifies for VAT exemption? I'm not wanting to avoid what is due, but I'm very very skint because the damage done by the rogue builder has put me £90k out of pocket, and scraping to work out how I can finish the work required to make the place habitable again, so if there is a way I can legitimately save some money I'd like to know about it.

35har1old

tegmim said:

We live in a farm cottage with several outbuildings. The main house wasn't really habitable, so we converted a barn to use temporarily whilst doing the building work (rather than getting a static caravan) which will then become an annexe for dependent relatives. However, we had a disaster with the first builder meaning the whole property stopped being habitable (he pulled down the kitchen and bathroom, and tore a chunk out the roof, and ripped out the plastering, leaving just a shell of four rooms). We then had to get another builder to repair it, and a year on it is soon going to be habitable.

In the meanwhile we've been paying full council tax on the house, and the inspectors have tried to put separate council tax on the barn. And we have paid VAT on the building work.

Is there any way to argue that the council tax should have been reduced whilst we could only live in the annexe? Is there any way to argue that the building qualifies for VAT exemption? I'm not wanting to avoid what is due, but I'm very very skint because the damage done by the rogue builder has put me £90k out of pocket, and scraping to work out how I can finish the work required to make the place habitable again, so if there is a way I can legitimately save some money I'd like to know about it.

Converting the barn should attract a 5% vat rate
if the main dwelling hasn't be lived in for at least 2 years but not sure if this is before starting work this is also 5%

lincroft1710

The time to have asked for the main house to be deleted from the Council Tax Valuation List was at the time it became uninhabitable. CT legislation doesn't allow for retrospective deletion nor short term band reductions.