BELATED PLANNING PERMISSION

摘要

The VAT zero rate for construction of new residential property requires correct planning permission to be in place. A new building can arise where an old building is demolished and replaced. It can therefore happen that permission is initially obtained to extend an existing property, but the permission is later changed (owing to circumstances) to allow demolition and rebuilding. The revised permission is sometimes confirmed officially only after the builder has embarked upon complete replacement. The question, then, is whether such a change in permission can affect the VAT on the construction services pre-dating the change.