New house – planning consent

The Scottish case of CMJ (Aberdeen) Limited (TC08140) provides an additional nuance to the perils of obtaining the zero rate on a residential new build.

This case related to whether the building had been constructed in accordance with necessary planning consent. The building had originally been intended to be renovated and possibly extended, albeit with a substantial amount of demolition. Consent for renovation and extension was therefore obtained. Such work would have to be standard rated.