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VAT relief on building work if you have a disability

  • Member
  • Practice Licence
  • 3 posts
  • # 122550

Hello all, I would value your thoughts please.

A couple are going to build an extension on the side of their house as an annexe for elderly parents who both have Blue Badges for progressive medical conditions.

The builder is VAT registered and happy to apply VAT relief to the elements of his invoices where appropriate.

Looking at the guidance, I believe that at least the provision of the accessible bathroom, wide access doorways and ramps can all be VAT free.

What I am unsure of is the preparation.

The guidance states that you'll not have to pay VAT on any necessary preparation or restoration work if its directly related to the VAT free work. For example if you have an extension to provide a downstairs bathroom, the VAT work can include the preparation of footings (including ground levelling), connection to services (water, gas, electricity and drainage).

Therefore I am wondering whether the groundworks etc for the whole annexe can be VAT free or if it would only be the proportion area (eg of the bathroom) that can be VAT free. Also whether a sewage treatment plant for the extension could also be VAT free.

The whole ground floor area is being purpose built and PP was given for this directly related to the annexe provision for the elderly couple.

Many thanks,


  • 1 post
  • # 122558

Hi Lisa


I cannot offer any specific advice on this scenario. But in my conversations with HMRC wrt VAT, they have told me that as long as my treatment of items and my calculations are documented with reasons why I have applied the principles I have to my calculations , then this would be acceptable to them and sufficient.


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