Lee Sharpe continues his look at reclaiming VAT on DIY housebuilding projects and highlights a potentially useful recent tribunal case.
In Property Tax Insider for April 2025, I covered the basics of the VAT DIY housebuilder claim process:
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A property developer should normally be able to reclaim most of the VAT on their materials costs when building a brand new home for re-sale, etc.
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Broadly, the VAT DIY housebuilder scheme is supposed to put someone who is building their own home on a similar footing to that property developer by allowing them to submit a special claim to recover the VAT on (most of) their construction materials expenditure.
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HMRC insists that the homeowner can make only one claim per property, so, practically speaking, it makes sense to take care to ensure that the claim includes all the VAT costs properly
