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Afternoon, We have just finished our conversion of part of a company run nursing home. As such it is a change of use from commercial to residential and, in theory, we thought that we would be able to claim the VAT on the materials. HMRC “DIY team” have stated that we cannot claim as the building had been “lived in” within the last 10 years. we think we still have a claim but was wondering if anybody had encountered anything like this with their build and claim? Looking for clarification and maybe a precedence if anybody can help 🤓

The Problem: Does HMRC formally regard a building as Complete after a successful VAT reclaim? If HMRC does regard it as Complete, then a company engaged on Supply and Fit (after the successful reclaim) , cannot 0 rate the VAT But if it doesn't, then a company engaged on a Supply and Fit basis can work without charging VAT We've successfully reclaimed our VAT. Because VAT431NB (section 3) doesn't give any guidance on the matter, I rang the HMRC helpline. Their answer was that the question was one that should be answered by the supplier. I asked where the supplier should get their guidance on the matter. The answer was that guidance was to be found in Section 3 of VAT431NB. A slightly different way of asking the same question is; Does a newbuild have two Completion states - one defined by the HMRC, and another by BCOs ?

Is anyone aware of any planning legislation that precludes the demolition-to-the-ground of a building (in this case barn) that's being converted? VAT Notice 708 Section 3.2.1 lays out the criteria under which new construction can be eligible for zero-rating. One type of qualifying building is where any previous building is demolished to the ground before new construction takes place. Whilst we're still going through planning, the previously-approved scheme included the description "existing buildings to be demolished". The barn in question is a non-designated heritage asset and the internal frame will likely need to be retained, however the most sensible route is to take it down, treat it, and re-erect it. If there is a point when no above-ground part of the building is still standing, then it seems clear that this is new construction and can therefore be zero-rated (otherwise why the provision detailing under what circumstances it's okay to zero-rate when there was a prior building?). However, is there some general planning rule or regulation that would consider it a breach of consent if a converted building was entirely taken down for some period of time? I've got a vague recollection of a potential main contractor telling me about a barn conversion that he was working on where they had to take down half the barn, build the new half, then take down the other half, and then build that and join it up. The purpose was so the original building was never completely taken down, but I can't remember if that was down to some specific planning condition on that site, or because of a general principle. Any thoughts? Ta in advance.

If one is conducting a conversion that involves erecting a new garage alongside a conversion, do the rules in VAT Notice 708 Section 3 (zero-rating new construction) or Section 7 (reduced-rating conversion) apply? Section 7.6.1 specifically calls out reduced-rating a newly-constructed garage, in the context of a conversion. Section 3.2.1 specifically calls out constructing or converting a new garage when it is constructed or converted at the same time as a dwelling: If VAT treatment is on a per-building basis, why would anyone choose to go down the reduced-rated route? The conditions in 7.6.1 and 3.2.1 seem completely equivalent to me.

Good Afternoon All, I am currently starting a self build on the Isle of Mull, i am wondering if anyone has any spreadsheet templates for keeping track of spending/materials/VAT paid to help watch our budget throughout the whole build. Many Thanks David Maclennan

Still going with my VAT return... almost there though! We do not have completion so will need to provide some other evidence. Did anyone use a letter from their mortgage company? This is ours: This is to certify that ********** released, on 27/01/2021, the last instalment of its loan secured on the building at Plot 4 ********** because the final valuation completed on 25/01/2021 confirmed a sufficient property value to support this release. The HMRC VAT return notes state that they need to know the building is complete... do you think this letter will suffice or not? Confusing! Glasgow City Council won't give us temporary habitation...only the full thing. I'm loathe to start paying council tax when there are literally no services on our street. Its a dump!! No bin collections etc etc etc... Thanks! Joanna

Just trying to get a handle on the actual savings in the real world through self-build CIL exemption and zero rated VAT. What % of your overall budget was saved through the VAT recovery and exemption from CiL? I'm not after a number - jus an approx %. My guestimate something of the order of 2-5% on a normal project. Cheers Ferdinand

I am building in Northern Ireland and I am probably going to be buying my windows from a company in the republic of Ireland and wondered if the VAT on the quote would apply. It's for supply and Fit and I wanted to have an idea on this before final negotiations as I don't want him doing me a "deal" that he had to do anyway....

Hello, I have just found this forum, too late for many of my questions as we finished our self build last year. It would have been so useful. It will however be great to chat with others on their own self build journey and get advice on the items we still need to tick off...what has been a very long list over the past few years.

Is it possible to claim back the VAT on a digger if bought from a commercial supplier

Sorry to bring this up again but I am struggling to find this in the archives. If I remember rightly you can claim the vat on a hob with built in extraction? We have such a hob and we are trying to get the kitchen installer to put this in an invoice and he said we will not be able to claim it back in an email we received today. I will be having a chat tomorrow to explain I just want the invoice stating it is a hob with extraction and not his opinion on whether we can claim it back or not! But have I remembered rightly that you can claim this back? TIA

I'm just planning budget and cashflow. However I hadn't thought about reclaiming VAT for purchases in Ireland. I.e. Kore insulated foundation - Circa £8k BPC - MVHR - Circa £3.5k I did ask the KORE Sales rep the other day but he wasn't quite sure? I know a few have used Kore foundations and BPC kits, hence any advice?

Hi; new to the hub and my first post. we are buying a plot of land to put a new house on; we will project manage only - not getting involved in the actual build. The hope is to then sell - at a profit. Our understanding is that VAT reclaim is only for a self build you intend on living in - so our costs would increase substantially. First question is whether contractors would still zero rate their invoices - so it's not quite as bad as it could be? but is there a better way to set up - ie start up a VAT registered Ltd co; in which case could we reclaim VAT and the end supply (sale of house) remains zero rated. anyone with experience to suggest the optimal route please?

Should the cost of installing a fibre-to-the-home (FTTH) fibre-broadband connection to a new dwelling be zero-rated for VAT? I ask as I have just going into battle with Cambridge Fibre asking for it to be zero-rated. Reading VAT Notice 708, I think the answer is yes as it falls under "any other service closely connected to the construction of the building". What does everyone think? (The installation will be a 40m cable between three telegraph poles plus a small bit of excavation for a conduit.) (Mine is a zero-rated eligible new build in Cambridge, England).

Hello all I have a 1960's riverside bungalow built on a concrete slab, raised about 4 feet above ground level by concrete piles. I am looking into getting the piles surveyed, with the idea of building a new dwelling on the existing slab. This is only really an option I want to explore if the build would be VAT free. If it's not, I may as well take up the piling too and start from scratch. However I'm confused as to whether it would be subject to VAT or not. The HMRC guidance suggests if you retain only the ground floor slab of a building then you can avoid the VAT. But it also goes to lengths to say you can't retain existing foundations. Do the piles count as foundations from a tax viewpoint or not? Grateful for any advice. Please feel free to indicate if you've had experience of anything similar. I will get pro advice before the build, but in the meantime would like to feel quite confident about this point.

I am doing a conversion of an old agricultural building and believe I qualify for the 5% reduced rate of VAT under the DIY housebuilder scheme. I need to get the old asbestos roof removed and properly disposed of - can anyone advise if this is able to be done at the reduced rate or whether I need to suffer full VAT on this? Thank you

I am about to start the VAT reclaim process. Do people think that a built in barbecue counts as a solid fuel cooker? It is outside but attached to the house. Would the granite work surface around it count as a kitchen worktop? Thanks

I wrote a blog entry some while ago about a lighting order I made from China, but it's buried amongst all the other posts now, so I thought I'd start a thread here. My search into ordering lights direct from China came about because I saw a picture of the vibia cosmos pendant lights on Pinterest and was smitten by the lights but not the price. I originally ordered some from one Chinese source that I had been pointed in the direction of, DHGate. This is similar to AliExpress in that it's just a market place for squillions of different sellers. I can't recommend DHGate based on my experience. I originally ordered my lights from them back in June and despite being told 3 times that they had been despatched, they have never arrived. I cancelled the order but was ignored and my payment was released anyway and I'm currently struggling to get a refund, so I wouldn't use them again. On the other hand, my experience of AliExpress has been very positivve. It has a good user interface and, if anything, appears to be cheaper than DHGate. My goods were shipped via air freight but with zero transport costs to me (Chinese companies get massive subsidies from their government for transport costs) and they have arrived just over two weeks later. I'm in possession of one half of the order, the remaining half is with the Post Office delivery office as they hang onto it until you've paid the customs charges, which I did this evening and the final lot will be delivered on Wednesday. The goods I've received so far have been very well packaged with corner reinforcement on the boxes and a wooden framework inside it to protect the pendant light. Hopefully, the others will be as good. Anyhow, I reckon I've saved quite a bit of cash on these and the customs charges weren't onerous at a total of £27.34. Blog update to follow once I've got the complete order and taken photos.

Our windows arrive next week and the window manufacturer is also installing them for us. The final payment is therefore due soon after completion. I have been told by them that the VAT is payable up front and I will be able to reclaim at a later date. However, I have also heard that if I submit an invoice for such a claim it will be rejected as it will be considered to be a wrongly charged VAT invoice. That is, the VAT shouldn't have been charged in the first place and therefore can't be reclaimed as a result! What is the collective's view on this? Thanks.

The chap I have lined up to demolish the last of the cottage is questioning whether he can zero-rate the work because he is an agricultural contractor and not a builder. I've read the rulebook (again!) and cant find anything that would mean he cant zero-rate. Does anybody have any experience of this? Thanks

I am building a new house but using a main contractor. This contractor has registered his involvement with HMRC in order to claim VAT exemption. However, I'm buying some materials and components myself when it is cost effective to do so, e.g. at exhibitions and shows and where I come across sale items. So, I would also like to register with HMRC for VAT exemption in my own right. Is this possible when the house is already registered by the contractor. Malcolm

I’ve had some grondwork done. The guy price inculds his time, a machine and a pecker. His invoice includes VAT. Am I correct to assume I can reclaim the VAT when I submit my own novices to the VAT man at the end of the build?

Trying to finalise my budgets and cash flow for my new build and not clear on VAT. I have read as much as I can and mostly clear on what can and can't be claimed. However not clear how the process work with a contractor. For example these are my thoughts but feel free to correct. Builder 1 is not registered for VAT if he purchases bricks etc. he pays inclusive of VAT, as he isn't VAT registered he cant claim the VAT. The alternative is for me to pay directly for the materials then claim back VAT, otherwise I pay the VAT to the builder and loose it. Builder 2 is registered for VAT if he purchases bricks etc. he pays the VAT then claims it back himself or can ask me to pay directly and claim back myself. Ideally I want to pay out as little VAT as possible during the build then have to claim from HMRC but maybe there is no choice . Maybe I am missing something obvious. Any help appreciated. - thanks.

We should be in a position to discharge our initial planning conditions in a couple of weeks and the first thing we will do then is get the bat man in and dismantle the roof of the existing bungalow. I know that the VAT reclaim usually relates to goods, but can I reclaim the VAT on the bat guy's services on the basis that it's a planning condition? I seem to recall seeing something alluding to this on BH before but can't find it now.

Hi everyone Will be needing a company to reclaim VAT payments on our completed DIY new build (BC will sign off in about a month) I'm not great with paperwork, so... idea is to drop off a box of receipts... And wait for cheque! Prefer to use someone in Kent if poss (not keen on sending paperwork through post!) Any recommendations welcome