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Building your own new-build home can be a really exciting project. Not only can you make your property exactly how you want it, the extra good news is you could also claim back some of the VAT costs. Here we look at how it all works.

 

When can I reclaim the VAT on a new build property?

How do I submit my claim?

What will I need to submit with my VAT claim?

What kind of building projects can I reclaim the VAT on?

How much VAT can I claim back on my self-build?

The DIY Housebuilders Scheme says you can reclaim VAT from HMRC if you are:

The important thing is that your project aims to create a new, habitable property in its own right. This means buildings like loft conversions, annexes and extensions aren’t included.

Bear in mind too that some planning stipulations may make your project ineligible for a VAT reclaim, especially if there are restrictions on use or occupancy. The point is that the finished result must be a home for yourself and/or your family, and HMRC will likely want to see evidence of this.

Usually, VAT claims are made by VAT-registered businesses by sending a VAT return. However, in this scenario you’ll need to complete either:

You’ll only be able to claim the refund once, and you must make sure you submit your claim within 3 months of the building works being completed.

HMRC will usually write to you within 6 weeks with information about when the claim will be paid if you’re successful.

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Lucy armitage
Lucy armitage
10th June 2012 9:31 am

Are we able to reclaim the VAT if we are the developer and plan to sell the new house (through an estate agent) which we have built. Thanks

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