New builds and property conversions could be a little cheaper
The popularity of programmes such as Grand Designs shows that there is an appetite for people to create a home that’s just that bit different.
What you may not have realised is that you can get a refund of VAT on building materials and services for your project, under some circumstances.
VAT is refundable if you are constructing a new house, or converting a property into a home. To qualify the home must be separate and self-contained and not be for business use (single-room home offices are OK). VAT for builder’s services on new buildings is already zero-rated.
Unless planning conditions state that facades or features must be retained, existing buildings must be demolished to qualify as new build. Refunds for builders’ work are also provided where a non-residential property is being converted or if a residential property has been vacant for more than 10 years.
Remember to keep records of all of the building plans, planning permissions, inspection reports and invoices associated with your project, to back up your claim for a refund.
If you need any help sorting out VAT associated with your self-build project just get in contact.
Lewis Smith & Co. – Accountants for businesses in Tipton