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Q&As
Can I reclaim VAT for work completed before the house was declared a new build?
In 2025 we started a renovation and extension project. After a short period it became clear that the property had numerous hidden structural defects and the decision was taken to stop work and apply for consent to demolish and then rebuild to the same design as already consented. Naturally, we paid VAT on the works done to that point. After 3 months, permission was granted and works recommenced. The Local Authority accepted that this was now a new build and granted CIL relief.
The build is now completed and signed off. I am putting in a VAT claim for certain items which we purchased (eg sanitary ware) and my question is whether I can also reclaim VAT on some of the works done in the initial phase (eg foundations and floor slab) which is now part of the finished house?
2 Answers
Hi James,
That’s a good question, we will pass it onto our experts and hopefully they’ll be able to provide a helpful answer.
Best wishes,
Elinor
The DIY housebuilder’s VAT scheme allows you to reclaim the VAT you paid on the materials purchased during the construction of your new build house. A knock-down-and-rebuild qualifies for this scheme (no matter where the building is placed on the plot or how much of the original slab you use), provided you have planning permission for a new build. In your case, therefore, because you bought certain materials and services during the time you had planning permission for refurbishment only, those purchases are not eligible for a VAT refund under this scheme.
Andrew Jones, Andrew Jones (The Vatman)