Self Build VAT Reclaim
At the end of the build you can reclaim the VAT paid on certain goods, if the new house is a private domestic residence. You will need detailed proof of VAT paid on all the goods for which a claim is to be made.
Exclusions for reclaiming VAT include VAT paid on professional fees (unless included as part of a design and build contract); VAT paid out on the hire of plant, scaffold and machinery; VAT on delivery and pallets (returnable or not) and any VAT wrongly charged on labour and materials supplied by builders or subcontractors that should have been zero-rated.
Renovating or restoring an existing dwelling will NOT qualify for reclaiming VAT paid out, unless the property has been empty for the last ten years - in which case it will be treated as a conversion.
If the dwelling has been unoccupied for at least the last three years, the rate will drop to 5% providing the work is handled by a VAT registered builder - there is no DIY VAT refund scheme for renovators equivalent to the one for self-build and conversion.
The VAT Reclaim must be made within three months of self build completion and there is just one chance to claim. Reclaiming VAT can be for most goods and materials bought from VAT registered suppliers. VAT claims for furniture, carpets, curtains, white goods, trees and plants, burglar alarms, professional services, equipment hire, transport of materials and tools used are not valid though.
HM Customs & Excise publish a guide - VAT Refunds For Do-It-Yourself Builders, dated January 1996 and under Notice 719 explaining who is eligible, how to reclaim VAT and what can be claimed.
Useful Links:
http://www.hmce.gov.uk/ - VAT Refunds For Do-It-Yourself Builders
