- DIY Housebuilders’ Scheme allows VAT recovery for constructing or converting a family home
- Applicable if building or converting property yourself or using a contractor
- Not applicable for properties intended for business use
- Contractors should charge zero rated VAT for new builds and 5 percent for conversions
- Self-purchased materials incur 20 percent VAT, but can be reclaimed through the scheme
- Restrictions exist on recoverable VAT costs; electrical blinds and broadband are not recoverable
- Claims must be submitted within six months of receiving the completion certificate
- Claims can be submitted online or by post using specific forms
- HMRC responds within two to four weeks and may request invoice samples
- VAT is repaid to the bank account provided on the claim form
- Incorrectly charged VAT by suppliers is not repaid by HMRC
Source: mha.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
