Is Our Family Home Eligible for Zero VAT?

12 December 2021
by sam paxton

I have a question regarding VAT.

We have planning permission to build in our existing horse riding/stable yard business. The house permission was granted with the condition that states: "The occupation of the dwelling shall be limited to a person solely or mainly working, or last working, in the equestrian business referred to in the application, or widow or widower of such person, and to any resident dependants."

This will be our family home so that our business can continue. My question is: will our self build still be zero VAT?

The business itself is not VAT registered. The VAT office claims this makes it not eligible.

2 Answers

  1. Anamika Talwaria says:

    Hi Sam,

    Thanks for your question. I’ve reached out to our experts and hope to have an answer for you soon.

    In the meantime, you may find this article helpful: https://www.self-build.co.uk/our-guide-claiming-back-vat-self-build/

    Best,
    Anamika Talwaria (Build It features editor)

  2. Kathy Tisdale says:

    Hi Sam,

    I once dealt with a case where the self builder was given a 106 agreement attached to their planning consent with similar conditions. Because the house could not be sold separately to the business, they were not eligible to make a claim. The same may apply here, but I would need some more information before saying for sure.

    Best wishes,
    Kathy Tisdale (Self Build VAT Reclaims)

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