Why Doesn’t Fitted Bedroom Furniture Qualify for a VAT Reclaim?

2 Answers

1. Anamika Talwaria says:

   6th January 2022 at 9:09 am

   Hello Neil,

   Thank you for your question. I’ve reached out to our team of experts and hope to have an answer for you shortly.

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

   Best wishes,
   Anamika Talwaria (Build It features editor)

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2. Kathy Tisdale says:

   28th February 2022 at 9:40 am

   Hi Neil,

   Sorry, this is going to be a long answer, but I can see why so many people ask the same question.

   The explanation as follows was given to me by an Officer at the DIY VAT section many years ago (yes this has been an issue for years):

   The VAT 431 Scheme puts self builders on the same level as someone buying a house on the open market. When you moved you would take the white goods, carpets and furniture. So a kitchen would be left but nothing else.

   I was told at the time that fitted furniture was extravagant and therefore not eligible.

   Basic storage is eligible though as set out in HMRC’s publication 708 Building and Construction which clearly sets out the conditions:

   13.5.2 What articles are not furniture but are building materials?

   Examples of articles that are not furniture and are building materials for VAT purposes, include:
   (a) basic storage facilities formed by becoming part of the fabric of the building, such as airing cupboards and under stair storage cupboards
   (b) items that provide storage capacity as an incidental result of their primary function, such as shelves formed as a result of constructing simple box work over pipes, and basin supports which contain a simple cupboard beneath, and
   (c) basic wardrobes installed on their own with all the following characteristics:
   • the wardrobe encloses a space bordered by the walls, ceiling and floor. But units whose design includes, for example, an element to bridge over a bed or create a dressing table are furniture and are not building materials
   • the side and back use three walls of the room (such as across the end of a wall), or two walls and a stub wall. But wardrobes installed in the corner of a room where one side is a closing end panel are furniture and are not building materials
   • on opening the wardrobe you should see the walls of the building. These would normally be either bare plaster or painted plaster. Wardrobes that contain internal panelling, typically as part of a modular or carcass system, are furniture and are not building materials

   The wardrobe should feature no more than a single shelf running the full length of the wardrobe, a rail for hanging clothes and a closing door or doors. Wardrobes with internal divisions, drawers, shoe racks or other features are furniture and are not building materials.

   13.5.3 What articles are furniture but are not building materials?

   All other finished or prefabricated furniture and materials for the construction of fitted furniture are not building materials for VAT purposes, such as:
   • wardrobes (other than those basic wardrobes described at sub-paragraph 13.5.2 including basic wardrobes installed as part of a larger installation of furniture in the room
   • elaborate vanity units
   • wall units, such as bathroom cabinets
   • laboratory work benches, and
   • pews, choir and clergy stalls

   Hopefully this helps.

   Kathy Tisdale (Self Build VAT Reclaims)

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