VAT liability question on house sale

[Brenbo]

I’m considering building a house and then selling it. I plan to will build it by direct labour.
Obviously I would be liable for CGT as it will not be my PPR.

However would I have a VAT liability also and how would it be calculated?

All help much appreciated

 

[Recam]

Obviously I would be liable for CGT as it will not be my PPR.

If you intend building a property for the sole purpose of resale then you are carrying on a trade and are liable to income tax, if by carrying on this "trade" you exceed the VAT thresholds (which would be the case in the disposal of a house) then you would be required to register for VAT and would be liable to account for VAT on the sale.

If this is a one off project, you might consider holding the property for a period (say one year) rent it if you wish or at least prove to Revenue that you intended to rent, put long term finance in place (again shows intend to hold rather than dispose) then after the holding period, sell, you will then, in my opinion, be liable to CGT and VAT will not be a problem.
If questioned by Revenue you would simply agrue that your intention was to hold and rent the property, but you changed your mind (which you are entitled). This situation might only work once.