Advice on claiming VAT back on new build - to live in??

[gwebstech]

Hi all,

I know that you can claim the VAT back for most materials on new builds - as long as you plan to live in it. But my question is, how long do you have to live in it to class as 'place of residence' as far as the VAT man is concerned? Im trying to build a house this year and i estimate there to be around £8000 VAT to be claimed back, but not if i sell it - obviously this complicates the issue for me. I dont know how much profit ill make yet, and that extra VAT might make the difference in whether its a good profit or not.

 

thanks for any help

[newhome]

I don’t think it’s at all clear TBH so expect HMRC to make the rules up as they go along. It seems to be down to intent. If they identify that your intent was to move into the house, stay a short while and then sell up to make a profit then they may do something about it. My personal thoughts (and they are not based on anything) are that you should potentially look to stay for 2 - 3 years. CIL exemption is much clearer and you have to stay for 3 years post completion or you lose the exemption. 

 

[gwebstech]

thank for that, i agree, i imagine HMRC bend the rules as much as possible to suit themselves

[Temp]

Bit old but still...

 

https://www.taxationweb.co.uk/forum/vat-claim-for-self-build-house-refused-t33144.html

 

 

Edited May 15, 2019 by Temp

[Temp]

I also read somewhere that it's your intention at the outset that matters not completion.