Basic VAT question...

[Crofter]

If you build a home for your own use, and intend to move in to it and reclaim the VAT, so you have to sell your previous house, or can you retain it and rent it out?

[joe90]

We rented out our previous house (for a couple of years) after completion of our build.

[Oz07]

What are you asking. Im sure the vat man is not interested if you keep previous dwelling providing you genuinely intend to make the new build you ppr. Its only the equivalent of moving in to new, selling old then buying an investment property

[Susie]

1 hour ago, Oz07 said:

What are you asking. Im sure the vat man is not interested if you keep previous dwelling providing you genuinely intend to make the new build you ppr. Its only the equivalent of moving in to new, selling old then buying an investment property

Correct the VAT reclaim is dependent on the house being a self build nothing to do with your existing home. 

[Crofter]

1 hour ago, Susie said:

Correct the VAT reclaim is dependent on the house being a self build nothing to do with your existing home. 

That's kind of what I thought, but I wasn't sure. 

The house we built a few years ago wasn't intended as our own home so no VAT reclaim. I'd looked in to a way around that at the time but I couldn't remember the details.

[Oz07]

Set up a company vat registered and invoice yourself

[Crofter]

30 minutes ago, Oz07 said:

Set up a company vat registered and invoice yourself

I thought about that when we built the cottage. We'd have had to charge VAT on our holiday lets which would have ended up costing much more than the reclaim would have saved.

[Oz07]

I meant just to build it not to own it but yeh all the fees probably outweigh benefits. Can use a contractor who will zero rate but again will pay more.