A: Yes. The exception from the land exemption in Grp1, Schedule 9 of the VAT Act 1994 was not affected by any direct tax changes so letting holiday accommodation is still a taxable supply at the standard rate of VAT (currently 20%) as explained in chapter 5 of Notice 709/3. You can voluntarily VAT register if you are making taxable supplies below the VAT registration threshold as per para 3.9 of Notice 700/1. If you then had improvements made, after becoming VAT registered, of £30k plus VAT of £6k then this VAT can then be claimed through your VAT returns subject to the normal VAT recovery restrictions for private use, holding valid VAT invoices etc.
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