Vat reclaim

25 April 2017

Advice needed!

I have lived in a property where I obtained planning permission for house renovations, which involved taking down the first floor and extending up using timber frame.

The timberframe company was not willing to give us warranty as the ground floor structure was found to be not strong enough to take the new structure. Therefore a decision to start from scratch using the original foundations was taken.

As the property does no longer feature any of the old existing building and is all new from foundation phase can we reclaim on VAT as self build?

Answers

Hi Alflil,

From what you’ve said it sounds like you should be eligible for the DIY housebuilders VAT exemption.

The basic premise set out in VAT Notice 708 is that if you’ve demolished completely to ground level (even if you’ve retained a basement or ground floor slab) then the project is eligible for the zero rating.

You can read more about VAT reclaims in our complete guide at https://www.self-build.co.uk/our-guide-claiming-back-vat-self-build

Good luck with your project!

Chris (Editor, Build It magazine)

26 April 2017

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