A new build is a building that has been built from scratch, without incorporating any existing building. The VAT Refund Scheme makes it possible for you to claim back the VAT on some of the building materials. You may apply for a refund of the VAT paid on certain specified materials using a form VAT431NB.
When you purchase build home from a builder or property developer, you won’t be charged VAT, This because the house being sold to you is zero-rated as the developer can claim back the VAT paid on some of his building materials. However, if you build a new home you won’t benefit from the zero-rating but will be able to claim a refund through the VAT Refund Scheme.
A new build is eligible for the scheme if it has been constructed as a residential or holiday home for yourself or relatives. If the new build has been purchased as a ‘shell’ from a developer, but you have fitted the home to completion, you may be able to claim back the VAT. A property that has been built for business use isn’t eligible for the scheme. There are other types of building works which are eligible for the scheme.
The VAT rates have changed and may have been charged at varying rates throughout the building of the property. A claim for a refund of VAT should be made no later than three months after the construction has been completed. Evidence of planning permission and building completion should be provided with the application for a VAT refund.