If you’re a self-builder or converting a non-residential property into a home, we have good news for you: most of the VAT you paid out on the project can be reclaimed.
The reclaim is possible thanks to rules implemented to give self-builders and converters the same benefits as those who buy a new build home from a developer. (These purchasers don’t have to pay VAT).
This scheme applies to individuals who are converting or building a property for their own domestic use, and is not available for property developers. All claims must be made within three months of project completion, and you only have one chance to place a claim: if your paperwork is inaccurate or incomplete, there is no option of trying again.
Making a claim
Steps for reclaiming the VAT are outlined in VAT refunds for ‘do-it-yourself’ builders and converters (VAT notice 431NB), which can be downloaded from www.hmrc.gov.uk or picked up at your local Tax Office.
Claims can be made for most of the products and materials used in the self-build or conversion project, provided they were bought from a VAT registered supplier. It is important that self-builders and converters keep complete and detailed records of all VAT payments made, as well as all invoices.
The VAT invoices on everything being reclaimed must show the following:
- VAT registration number of the supplier
- Description and quantity of the goods / services
- Price of each item
- Your name and address (if the amount exceeds £100)
HMRC will require a letter or certificate of completion from the local authorities: a Council Tax assessment or valuation rating will also suffice.