Ex council house refurbishment

[pilgrim]

Hello everyone,

Ive only just found this forum but what from I have read over the last few days it seems like a good place to be!

I am a few months into a full gut and refurbishment of an old council house 2 up 2 down semi detached, bit hard to find out the date of construction but I think it was 1930s. The house had been abandoned since 1998 so needs a lot doing to it. At the moment the house has no central heating system and the wooden suspended floors on the ground floor have rotten away. So basically a new build just with the old external walls still standing!

I have stripped out all the old stuff in the house and now have bare walls downstairs and just the old stud work timber from the old internal walls left upstairs! So I am ready to start ordering the plasterboard and insulation!

Im doing most of the building and planning work myself so looking for as many practical tips and suggestions as possible, need to keep the costs down as much as I can!

I am planning on installing an air source heat pump (no mains as here), wet underfloor heating downstairs and lots of insulation and new double glazing. Then if all goes well I may put an extension on the back in the future!

[Temp]

Welcome. Did you consider the options for getting it zero rated for VAT?

[pilgrim]

On 05/12/2021 at 02:24, Temp said:

Welcome. Did you consider the options for getting it zero rated for VAT?

Yes, someone did tell me this, I understood that you just need to keep all receipts and then submit a claim once finished, is that correct?

[Temp]

Yes and no...

 

There are three ways to get things zero rated...

 

1. Build a new house on an empty site or do a knock down and rebuild. If the latter you have to demolish pretty much everything with the possible exception of the front wall if the planners want it retained due to its architectural value. Labor is zero rated to you (nothing to reclaim), materials are standard rated to you (and you can reclaim it). 

 

2. Refurbish a house that's been empty for 10 years. The property must be refurbished by a VAT registered builder. He can zero rate everything to you. I don't think there is an option to do any DIY and reclaim the VAT on materials. The builder must start before you move in even if only by a day or two. Move in first and fails the "empty for 10 years test". There is also a scheme for houses that have been empty 2 years.

 

3. Convert a building from something else like an office or agricultural building. You pay 5% VAT but can reclaim it at the end.

 

 

 

 

[pilgrim]

I think that you can do the work DIY and still claim the VAT back as long as the finished house is your, or your families home.

This is what it says on the 431C form. But you do have to make sure that none of the trades that you use also try and claim the 0%. 

Quote

"You are eligible for this VAT Refund Scheme if you, for reasons other
than business:
• have converted a previously residential property for either you or your
relatives, that has not been lived in (for 10 years or more before the
work began), into a family home for residential or holiday purposes"

 

[Temp]

Good catch. I thought it had to be done by a Vat registered builder. I can't edit my reply now or I would.