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Posted Sun, 08 Sep 2024 08:20:09 GMT by Colnmill
Hi, We are currently renovating a house which has been empty for more than 2 years. I have the 5% VAT certificate from the council and all the trades who charge VAT are already only charging me 5% however, I have paid 20% on all materials. My questions are: Can I only put in one claim for this project (it's taking quite a long time)? If so at what point? We created a company to buy the houses, does that company need to be registered with VAT to make the claim, even if we don't think we will hit the VAT earning threshold in the future? How do I make my claim? and how long does it take to process? thanks
Posted Thu, 12 Sep 2024 11:07:08 GMT by Jay Cooke
You state you are refurbishing a house which has been empty for 2 years, you then later state that you created a company to buy the houses (plural), so that might be a typo but in essence you have acquired an old dwelling or dwellings into a limited company. What claim are you thinking of making? If it is a self-build DIY claim, I do not think that would be eligible, DIY claims are for new build dwellings, whereas you are refurbishing an existing dwelling. Also, DIY claims are meant to be made by individuals rather than a company. Companies trade and so if a company owns a property it would at some point sell the dwelling, you cannot use the DIY scheme if the intention is to develop and sell a property. If you are thinking of registering for VAT and reclaiming VAT having sold the refurbished dwelling, the sale of an existing (old) dwelling is exempt, exempt means you cannot charge VAT on the sale or rental of an existing dwelling nor reclaim any VAT related to the refurbishment and sale of that property. You don't state what your intention is with the property, but in reality you can rent it, or sell it, or live in it but in none of these scenarios is there an opportunity to reclaim input tax, only if this were a new bild being sold (zero rated) could input tax be reclaimed.
Posted Fri, 13 Sep 2024 08:24:51 GMT by HMRC Admin 21 Response
Hi Colnmill,
There is a DIY scheme available.
However this is only applicable where either a new house is built or where renovations are carried out on a house which has not been lived in for 10 or more years.
Please see the guidance below:
Claim a VAT refund for a conversion if you're a DIY housebuilder
If you have created a company then the company can register for VAT only if it is making taxable supplies.
If the company becomes VAT registered then it is allowed to recover VAT as input tax in the course of it's business.
Please see the guidance below:
10. Introduction to input tax
3. Working out whether you need to register.
Thank you.

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