Claiming Back VAT on a Self Build Property
A bonus for self-builders is that they are able to claim back the value added tax (VAT) at the end of the build. At a time when money will be tight after spending so much on the build it is a treat to have a substantial amount of money to perhaps treat the family to a holiday after a year of hard work.
How Many Claims?The self-builder can only make the one claim and must apply within three months of the house being completed. A certificate from the planning department, architect or bank you have your mortgage with will also have to be included. The certificate from the bank must state that you have been paid the final payment on the build. If you are unsure as when to claim this would be when the house is habitable and the planning inspector has signed off the last item on his list.
How to ClaimInformation Notice 719 (May 2002) do it yourself builders and converters, can be downloaded from the HM Revenue & Customs website. This will explain how to apply for the claim pack along with other useful information. You will have to send with the form every invoice and document appertaining to the claim. It is advisable to keep a copy of all the paperwork just in case anything goes missing.
What to Claim forHM Revenue & Customs are very strict on what can be claimed and what cannot be claimed. Examples of what can be claimed for are:
- Building materials
- Fitted kitchen furniture
- Cookers that supply hot water and heat
- Burglar alarms
- Fire alarms
- Flooring but not carpet
- Decorating materials
- Fire places
- Lifts and hoists
- Inside swimming pool
- Garden walls and drives