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HMRC internal manual

VAT Construction

From
HM Revenue & Customs
Updated
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- Zero-rating the construction of buildings: is a building being constructed: what if a piece of work is not an enlargement, extension or annexe

If a piece of work is not an enlargement, extension or annexe, it qualifies as the construction of a building.

This is illustrated in Kahal Imrei Chaim Limited (VTD 19625). The case involved a development at the rear of an existing synagogue that adjoined the existing building to create a single, fully integrated but much larger synagogue. It was held on the facts that the structure was not an enlargement, extension or annexe to an existing building, but the construction of a building. It was not dependent on or ancillary to the existing building and did not make that building bigger. A new synagogue was created that made incidental use of the existing building.