The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
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
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.
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)
VATA 1994, s 35(1A); VCONST24200
These kinds of relevant works are described further below.
Construction in this context can be understood in the same way as it is in the context of the zero-rating for construction services which is described in
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