CLAIMING VAT ON BUILDING A NEW HOME

You can ask your builder to charge you zero VAT rate, or you can apply for VAT refund on building materials and services if you are.

  • Building a new home or converting one.
  • Building a property for non-profit or for a charity

To claim you must fill in the form 431NB for new home or form 431C for conversion, from the attached link.       https://www.gov.uk/vat-building-new-home/how-to-claim

New homes, such as

  • Separate and dependent,
  • For family use or holiday in.
  • Not wholly for business use.

 

Conversions:

  • The building must not be residential building or
  • If residential building not occupied for 10 years.
  • The building will be converted into homes.

 

Communal and charity buildings: Such as

  • Children’s home
  • Hospice homes
  • Non-profit business, no fees charged for use of the building.

 

Materials: you may be eligible for VAT refund on building materials that are incorporated into the building and cannot be removed without tools or damaging the building.

 

The following do not qualify for VAT Refund.

  • Building in the Channel Islands
  • Non vatable materials or services such as zero rated or exempt VAT.
  • Costs of architects and surveyors
  • Equipment hiring
  • Commercial building
  • Building that cannot be sold or used separately.
  • Materials costs that are not used in the building.
  • Building furniture i.e wardrobes, certain electrical and gas appliances,
  • Carpets and gardening plants.

 

When making the claim you must include all the documents listed in the claim form, and all invoices (not proformas) are proper and showing amount of VAT charged. The form must be sent to:

National DIY Team

SO970, HMRC

Newcastle, NE98 1ZZ

 

You should get your refund within 6 weeks if you still need help, you can call. DIY and House Building VAT Enquiries Team on 0300 322 7073.

 

For builders not to charge VAT during construction, you must provide them with documents such as copies of planning consent, and drawings, any VAT charged will not be refunded.  

Published On: March 7th, 2021 / Categories: News /

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