Can You Claim A VAT Refund?
The 'DIY Housebuilders Scheme' allows self builders to claim back VAT on most building materials.
So, you have either just started your self build journey or you have recently completed your project and you want to know if you can use the 'DIY Housebuilders Scheme' to claim a VAT refund. HMRC have a strict criteria which all self builders must meet to be able to claim back VAT. Below is a guide to self check eligibility.
New Build
You are likely eligible for a New Build VAT refund if
- You have constructed a new dwelling on a plot of land to be used either by you or your relatives as a family home for residential or holiday purposes.
or
- You have constructed a new dwelling on the site of a former building as a family home for residential or holiday purposes.
To qualify you must have demolished the pre-existing building to ground level (you may retain cellars, basement and the ‘slab’ at ground level).
or
- You have bought a new building as a ‘shell’ from a developer and have fitted it out to completion, for either you or your relatives, as a family home for residential or holiday purposes.
If you have constructed a dwelling you do NOT intend to live in yourselves but intend to sell or let out or use for any other business purpose this would not usually be eligible for a VAT reclaim.
(a home office is acceptable)
Properties that are not eligible include:
+ Any property you intend to sell once completed.
+ Any property you intend to rent out once completed.
+ Extensions & Annexes.
+ Caravans & other non permanent housing.
+ Properties built outside the UK.
Conversion
You are likely eligible for a Conversion VAT refund if
- You have converted a non-residential building into a dwelling to be used either by you or your relatives as a family home for residential or holiday purposes.
or
- You have carried out works to a building that has previously been lived in, but has been empty for at least 10 years.
To qualify you must be able to prove that the property has been empty for at least the last 10 years prior to work starting.
or
- You have bought a converted building as a ‘shell’ from a developer and have fitted it out to completion, for either you or your relatives, as a family home for residential or holiday purposes.
If you have converted a dwelling you do NOT intend to live in yourselves but intend to sell or let out or use for any other business purpose this would not usually be eligible for a VAT reclaim.
(a home office is acceptable)
Properties that are not eligible include:
+ Properties which have been refurbished and not vacant for at least 10 years prior to work commencing.
+ Any property you intend to sell once completed.
+ Any property you intend to rent out once completed.
+ Extensions & Annexes.
+ Caravans & other non permanent housing.
+ Properties built outside the UK.
