Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Thu, 17 Jun 2021 15:22:36 GMT by Louisa Williams
I'm struggling to find the information on VAT for self build. I work for a developer who built his own property and the VAT reclaim went through the self build process and was straight forward as his company was only building that house at that point. There are now several houses being built, one of which will be the owners, who owns the plot. It will be difficult to separate out the costs. My thinking is that there could be an agreement between the company and the owner to construct the property and the company claims the VAT and invoices the owner for the cost of the build. Is that ok?
Posted Wed, 23 Jun 2021 10:34:38 GMT by HMRC Admin 9

If a company is supplying services relating to new builds, then if all conditions are met as per VAT notice 708 section 3, the supply is zero-rated. 

Buildings and construction (VAT Notice 708)

The company would not charge VAT on their invoices if one of the properties is for the plot owner to use for himself to live in. He would have to have invoices made out to him, as the claimant, to recover the VAT on materials he purchases himself to claim under the DIY new builders scheme.

Claim a VAT refund if you build new houses on a DIY basis

The construction company would recover the VAT they incur on the materials under normal input tax rules.

Thank you. 

You must be signed in to post in this forum.