Buildings and construction ― DIY builders scheme

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Buildings and construction ― DIY builders scheme
  • When is VAT refundable under the DIY builders scheme?
  • What are ‘relevant works’ for the purposes of the DIY builders scheme?
  • When are buildings designed as dwellings or intended for an RRP or RCP constructed?
  • What is a residential conversion in this context?
  • Have the works been carried out lawfully?
  • Are the works carried out in the course or furtherance of business?
  • Has VAT been correctly charged on the goods or services?
  • Are the goods / services eligible for the DIY builders scheme?
  • Have the goods or services been used in the construction / conversion?
  • Is the claim made by the person carrying out the relevant works?
  • When and how must a claim be made?
  • Can I reclaim EU VAT?
  • Practical points around the DIY builders scheme

This guidance note provides details of the DIY builders scheme The scheme allows people to claim refunds of VAT incurred in relation to some goods and services used for certain non business construction or conversion works Broadly it may be possible to use the scheme where someone is building new homes converting existing buildings into homes building non profit communal residences like hospices building properties for charities Building a new home and VAT When is VAT refundable under the DIY builders scheme A claim for a refund of VAT incurred on goods and services can only be made under the DIY builders scheme where the following conditions are satisfied relevant works have been carried out the works are carried out lawfully the works are not carried out in the course or furtherance of business VAT has been correctly charged on the goods services used for the works the goods and services are eligible goods services the goods and services have been used in the construction or conversion the claim is made by the person carrying out the relevant works the claim is made in the correct way respecting time limits and including supporting documentation VATA 1994 s 35 VCONST24100 These conditions are explained in this guidance note What are relevant works for the purposes of the DIY builders scheme A claim can only be made under the DIY builders scheme when relevant works are carried out Relevant works include the construction of a building designed as a dwelling or number of dwellings the construction of a building for use solely for a relevant residential purpose RRP the construction of a building for use solely for a relevant charitable purpose RCP residential conversions VATA 1994 s 35 1A VCONST24200 These kinds of relevant works are described further below When are buildings designed as dwellings or intended for an RRP or RCP constructed Construction in this context can be understood in the same way as it is

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