V4.232I Enlargement of, or extension to, an existing building
This paragraph examines the meaning of 'enlargement of, or extension to, an existing building'.
VATA 1994, Sch 8, Group 5, note 16(b) excludes the 'enlargement of, or extension to, an existing building' from the meaning of the 'construction of a building' for the purposes of zero-rating under VATA 1994, Sch 8, Group 5 except to the extent that the enlargement or extension creates an additional dwelling or dwellings1.
For an overview of the scope of zero-rating under VATA 1994, Sch 8, Group 5, see V4.231.
For the scope of zero-rating for the construction of buildings, see V4.238.
For discussion of term dwelling in this context, see V4.232BA.
For the scope of reduced-rating for certain residential conversions and the renovation and alteration of certain dwellings, see V4.411 and V4.413 respectively.
Where, in Wright & Fuller Ltd2, construction work was undertaken to develop a complex of five buildings used as a nursing home, the tribunal approved a two-stage approach which:
• identified the existing buildings prior to the construction work
• determined whether construction work amounted to enlargement, extension, or an annexe (for annexes, see V4.232J)
Similar tests have been adopted in other cases, such as: London Diocesan Fund3; Marchday Holdings Ltd4; and Cantrell & another (t/a Foxearth Lodge Nursing Home)5
Whether an existing building—enlargement of, or extension to, an existing building (zero-rating)
For discussion of whether there is an existing building, see V4.232H (in the context of VATA 1994, Sch 8, Group 5, note 16(a) which excludes 'the