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Reclaim VAT on a new home or Converting a building into a home

If you are building a new home or converting a building into a place to live, whether you do the work yourself or a have it done for you, you may be able to reclaim the VAT you pay on some of the building materials and conversion services you use.

What projects does the refund scheme apply to?

Construction of new dwelling
The refund scheme applies to the construction of a new dwelling-a place where someone is intending to live. It also applies to the conversion of a non-residential building into a dwelling. The building must not be intended to be used for a business purposes.

Finishing a building
You can still make a claim if you add to or finish a partly completed building, for example where you buy a shell from a developer and fit it out, or have it fitted out by a builder.

You cannot, however, claim for extra work you do on a completed building brought from a builder or developer-such as adding a conservatory, patio, double-glazing, tiling, or a garage.

Where a building is a non-residential building. That means a building that has either never been lived in, or hasn’t been lived in for ten years-not even on a occasional basis as a second home. You are allowed to live in the property while the work’s being done, as long as you move in after the work has started.

How to make a claim.
To make a claim, you have to fill in various forms, it’s a lot easier to do this as you go along, so it makes sense to obtain the forms before you start work. You need a Reclaim VAT claim pack form the Revenue and Customs these can be down loaded from there web site.

Who can use the scheme?
Anyone who buys eligible goods for a project that qualifies for this relief make a claim. It doesn’t matter who actually does the work-you can use builders to do some or all of it for you.

Who can’t claim?
You can’t claim a VAT refund on your DIY building work if you are using the building for business purposes. So you can’t claim, for example, if you:

  • Are a speculative developer
  • Are a landlord
  • Run a bed and breakfast business
  • Run a fee-paying care home
  • Are a membership club or an association
  • Run a fee-paying school

If you work from home-using one room as a office-then you can still make a claim.

For further information visit the HM Revenue and Customs web site
Reclaim VAT on a new home or conversation