Estimate your project costs instantly with Build It's interactive self-build cost calculator
Calculate NowGet an accurate, detailed cost breakdown of your project
Submit plansIf I move into my new build, or a family member does, and I have claimed back VAT, how long do I/we need to live there before selling it without any VAT charge being raised?
Hi Sharon,
That’s a good question – we will contact one of our experts who can hopefully shed some light on it.
Best wishes,
Elinor
The UK DIY Home Builders 431(NB & C) Scheme is available for self builders who intend to live in the property. To reclaim the associated VAT through this particular scheme, you must plan to live in the house from the start of the planning process to the end of the build, and relatives may also reside with you even if this means building or converting non-domestic property.
However, HMRC does not specify a minimum period that you must remain living in the property – there is no statutory ‘12 months’ or ‘five years’ occupancy requirements, for example, attached to the VAT refund. People’s circumstances can change, and if you wanted to live in the house but need to sell because of job relocation, ill health, financial situations or any other unforeseen circumstance, it does not invalidate a VAT claim already settled by HMRC.
You cannot reclaim the VAT charged on materials for the property if it’s used for business purposes, letting or building to sell for profit, because then you are a developer. Should this be the case, the VAT can be reclaimed via different means.
Kathy Tisdale, Self Build VAT Reclaims