Here are the situations where VAT cannot be reclaimed [source: http://www.gov.uk/vat-building-new-home/eligibility]:

You can’t get a VAT refund for:
• building projects in the Channel Islands
• materials or services that don’t have any VAT – eg they were zero-rated or exempt
• professional or supervisory fees – eg architects, surveyors
• hiring machinery or equipment
• buildings for business purposes
• buildings that can’t be sold or used separately from another property because of a planning permission condition
• building materials that aren’t permanently attached to or part of the building itself
• fitted furniture, some electrical and gas appliances, carpets or garden ornaments

The requirement for an individual to work on the premises would not appear to debar individuals from reclaiming VAT. The limitation clearly states that selling or use are the key factors. In my opinion this does not apply in this case.

Rachel Pyne (Director of Financial Services at BuildStore)