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Posted Sat, 09 Mar 2024 11:06:52 GMT by Mjecoc
Can some one help me please . I am building a new dwelling (self build) - the new house will be formed from an old stone barn being converted (which is part of a listed building) with a large new build extension (2/3rds of the plot) being built over a stable block which has been completely demolished, as part of the permission, and removed to ground level. My contractor has put his first invoice in with 20% vat, but I think it should either be 0% (as new build) or 5% vat (followed by reclaim at end under self build 431C rules), but not sure , can someone advise please, as I know I need to sort this at the beginning ! Thanks .
Posted Mon, 11 Mar 2024 15:29:01 GMT by HMRC Admin 19
Hi,

If you are converting an existing non residential property in to a single household dwelling, then the work cannot be charged at the zero rate of VAT as a new build is not taking place.

However if the conditions are met below, then 5% VAT can be charged as a qualifying conversion.

Reduced rating the conversion of premises to a different residential use

Claim a VAT refund for a conversion if you're a DIY housebuilder

Thank you.

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