So long as you meet the criteria for zero-rated VAT on self builds, you can reclaim the VAT you were charged for the materials on your second self build home. The property must be your primary residence (or that of a relative) and you must have planning permission in order to be eligible. The time span between your two build projects confirms that you are not a developer or carrying out the build for profit, so HMRC would therefore allow you to claim the VAT back.
If you submitted several claims over several years, for example, HMRC would certainly question you. That’s simply because they would suspect that someone submitting multiple claims over a relatively short time frame is actually building for profit, as opposed to creating their own home to live in.
Hi Andrea,
So long as you meet the criteria for zero-rated VAT on self builds, you can reclaim the VAT you were charged for the materials on your second self build home. The property must be your primary residence (or that of a relative) and you must have planning permission in order to be eligible. The time span between your two build projects confirms that you are not a developer or carrying out the build for profit, so HMRC would therefore allow you to claim the VAT back.
If you submitted several claims over several years, for example, HMRC would certainly question you. That’s simply because they would suspect that someone submitting multiple claims over a relatively short time frame is actually building for profit, as opposed to creating their own home to live in.
Best of luck with your project plans,
Kathy Tisdale (Build It’s VAT reclaims expert)