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Harrison is perplexed by absurd VAT charges

He is told it is cheaper to demolish his home and rebuild rather than extend

Harrison inherited a two bedroom bungalow in south west England from his parents several years ago. He now wants to extend the property to create two more bedrooms so he can move in along with his wife and children. He was astonished when his architect advised him that it would be cheaper to demolish the entire home and start again from scratch. This was because of the 20% VAT levy which is applied to extensions but is not applied to developments certified as "new builds". This seemingly unbelievable circumstance means that the home is currently sitting unoccupied as Harrison is reluctant to embark on such a wasteful construction project The HomeOwners Alliance is investigating this absurd situation and are looking for other examples. Please do send us your stories to Find out more



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