Wayne
- 4 min read

Self Build VAT Reclaims - Eligible New Builds & Conversions

New Builds

What qualifies as a new build

A new build property is usually one that has been built on a plot of land which has never previously been developed, such as a garden plot. As long as you pass the criteria listed below then you will be eligible of a VAT reclaim on the majority of materials you have purchased throughout your project.

Another option for a new build is to demolish an existing dwelling and rebuild a new property. This has it's own criteria in that the existing property has to be knocked down to the ground level, however you can retain cellars, basements and ground level slab.

You can also retain one façade of the pre-existing structure as long as it’s part of the approved Planning permission.

Lastly the final option for a new build construction is the purchase of a building shell with the intention of completing the fitout of the dwelling yourself.

A shell is a building which is structurally complete (Walls, Roof, Windows & Doors and Utilities) but not a functioning home. The shell will lack facilities to make it a liveable dwelling.

If the only work required is decoration then the building is not considered a shell as it is fully habitable. Documentation will be required which proves the purchase was as a building shell.

Eligibility criteria

To be able to reclaim VAT on a project listed above you need to be able to pass HMRC's eligibility check.

You are eligible to reclaim VAT under the DIY Housebuilders Scheme if as long as you answer yes to following points:

+ You have Full Planning Permission or Outline Planning Permission and Approval of Reserved Matters for your project.

+ You or family members intend to live in the property as a main residence or holiday home.

+ You have or will have a Completion Certificate (or other acceptable proof of completion) which is still dated within 3 months of receiving the certificate.

We have 3 months from the date on the document to submit an application on your behalf.

+ The property is an independent dwelling and the planning permission doesn't prevent separate use or disposal of the new dwelling.

However, you will not be able to reclaim a VAT refund if you answer yes to any of the following points:

- You intend to sell the property once completed.

- You intend to let/rent the property once completed.

- You intend to use the property for business purposes.

- Because of a clause in the planning permission you are not able to sell or use the property independently. Examples of non eligible buildings include:

*Extensions.

*Annexes.

*Any dwelling whose separate use or separate disposal is restricted to a specific business or piece of land.

*Any other form of ancillary structure or building which cannot be disposed of or used separately.

Conversions

What qualifies as a conversion

A conversion usually consists of the redevelopment of a non-residential building such as a barn or school into a dwelling house. Examples of a non-residential building include:

*Agricultural building i.e. Barn

*Redundant School or Church

*Office

*Shop

Another conversion option is to carry out work on a previous residential dwelling. However this is probably one of the harder to qualify for as the building needs to have been empty for at least 10 years prior to any building work commencing.

We will require proof that the property was vacant for at least 10 years before you started work.

A building has been deemed to be lived in if it was a dwelling used as someone’s home. Buildings that have been used as a dwelling will not only include Houses & Flats but also:

* Public Houses & shops with non self contained living areas

* Bedsit accommodation

* Crofts

* Domestic Garages

A dwelling need not have been self contained or designed to a modern standard to be classed as someone’s home.

Lastly the final option for a conversion is the purchase of a converted non-residential building with the intention of completing the fitout of the dwelling yourself.