VAT Zero Rated for Self Build Homes and House Renovations
Building your own home, converting a barn and
some renovation projects are zero-rated for VAT. So how do you claim your VAT
back?. Those buying a new home from a builder
or developer don’t have to pay VAT on top of the purchase price because such
properties are exempt from VAT. It would be unfair if those building a self
build home had to pay this tax. In recognition of this fact,
HM Revenue & Customs (HMRC) has put in place certain arrangements for the
private individual building their own home, or converting a non-residential
building into a home, to reclaim most of the VAT paid out.
How to make a Self Build VAT Claim
The process of claiming back the VAT is quite
simple but it does have to be carried out quite thoroughly and it is important
that the self builder or converter keeps a record of all payments made, together
with copies of all invoices. I would advise that during the self build project
you have a file that you fill out weekly with the money you are spending, who to
and keep the invoice together in that file. After you have finished you self
build home it is the easier to fill out the VAT reclaim form (431NB). Those who are not good at accounting may choose to
use one of the VAT recovery specialists found on the internet.
The VAT claim must be made within three months of
the building being completed and you only get one chance to claim, so you need
to get it right first time. You can make a claim for most of the goods and
materials bought from a VAT registered supplier which are incorporated into the
building or the site. Here is a link to the
Self Build VAT Reclaim Form
VAT
Reclaim Form 431NB
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