DIY housebuilders scheme

By Tolley

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

  • DIY housebuilders scheme
  • What the scheme covers:
  • Constructing a new dwelling
  • Convert an existing property into a dwelling
  • Conversions of non-residential buildings into dwellings under permitted development rights
  • Making a claim

This guidance note provides details of the scheme under which private consumers can recover VAT on the construction of the new dwelling or converting a non-residential building into a dwelling.

What the scheme covers:

The scheme covers the following buildings:

Constructing a new dwellingThis refund scheme applies to constructing a new dwelling.
The works must be carried out in the UK including the Isle of Man. The building must not be intended to be used for business purposes.
Finishing a buildingA claim can be made if the individual adds to or finishes a partly completed new building, eg a shell is purchased from a developer and the individual fits it out, or has it fitted out by a builder. Claims cannot be submitted for any extra work carried out in respect of a completed building bought from a builder or developer, eg adding a conservatory, patio, double-glazing, tiling, or a garage.
ConversionsWhere the building is converted into residential accommodation it must be a non-residential building. This means that the building has either never been lived in, or hasn't been lived in for the last 10 years.
Communal buildings and charity buildings

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