Under a new initiative of HMRC in spring Budget 2023 , individuals constructing their own homes now have the opportunity to reclaim VAT incurred through a newly introduced online service. HMRC has initiated this online platform to facilitate the reimbursement of VAT for do-it-yourself.
In essence, this scheme enables taxpayers engaged in building their own homes to recover the VAT paid on building materials integrated into the structure. The scheme extends its application to individuals converting a non-residential structure into their residence and those erecting a new charitable building. For the latter, the charitable building must be exclusively used for a relevant charitable purpose or a relevant residential purpose.
To guide taxpayers through the claiming process, HMRC has released new guidance specific to the type of claim being pursued, such as VAT refunds for new builds, VAT refunds for conversions, and VAT refunds for constructing a new charity building.
Taxpayers without access to the online service have the option to submit claims via paper forms however as expected the time taken in this later case would be a lot more than the first option. The online service is accessible through the links on HMRC’s website:
Claim a VAT refund for a new home as a DIY housebuilder
To file a claim under this scheme successfully, the taxpayer will require:1) the plans of the building 2) the building regulation completion certificate 3) evidence of planning permission.
If you need help with this please contact us at 02920614140
