A property developer can recover VAT on eligible costs through his VAT return.
The Refund Scheme puts DIY builders and converters in a broadly similar position to a developer selling a zero rated property. The scheme enables the self builder or converter to reclaim the VAT on the main construction or conversion costs.
You may be eligible to make a claim if you are constructing a qualifying:-
– Dwelling to be your principal place of residence.
– Building for communal residential purposes.
– Building for Charitable purposes.
You may be eligible to make a claim if you are carrying out a conversion on a non-residential building :-
– The property being converted has NEVER been used as a dwelling, or for a relevant residential purpose.
– Or the property being converted has NOT been used as a dwelling, or for a relevant residential purpose for 10 years immediately prior to work commencing.
You may be eligible to make a claim if you purchase a building only partly completed, and you fit out the property at your own cost.
The above is only a brief guide to help you assess your eligibility. HMC&E VAT office criteria expand on the points listed above, and we will assess your position on consultation.