A. In order to qualify for zero rating on the construction of the annexe we must consider if the annexe meets the definition of a dwelling.
Notice 708 Section 14 explains in detail the definition of a dwelling as reproduced below:
14.2.1 The definition
A building is ‘designed as a dwelling or number of dwellings’ where the building contains a dwelling or more than one dwelling and in relation to each dwelling the following conditions are satisfied:
- the dwelling consists of self-contained living accommodation
- there is no provision for direct internal access from the dwelling to any other dwelling or part of a dwelling
- the separate use of the dwelling is not prohibited by the terms of any covenant, statutory planning consent or similar provision
- the separate disposal of the dwelling is not prohibited by the terms of any covenant, statutory planning consent or similar provision, and
- statutory planning consent has been granted in respect of that dwelling and its construction or conversion has been carried out in accordance with that consent
The annexe is self-contained and there will be no access from the main residence to the annexe, however the planning consent prohibits the separate use and separate disposal of the annexe and therefore a qualifying building is not being constructed and is not eligible for zero rating.
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