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Where Taxpayers and Advisers Meet

DIY tax refund

Heatherhall1
Posts:1
Joined:Fri May 11, 2018 7:59 am
DIY tax refund

Postby Heatherhall1 » Fri May 11, 2018 8:16 am

Hi

Between 2015-2018 I have completed a self build project to extend my own home and split it into two separate dwellings plot 1 and Plot 2 with separate entrances and titles on land registry. plot 2 ( existing house ) was sold in Dec 2017 My family and I now live in plot 2 the new build. All the correct certification has been obtained and the existing I have submitted a DIY vat refund claim via HMRC to reclaim the 20%paid on materials which has been refused.
Having called HMRC on numerous occasions prior to the application to check the criteria I was always told by the operatives that my claim was eligible. It is impossible to gain confirmation from HMRC of eligibility before the project is completed as the application has a 3 month window after the building control certification is issued.
The DIY claim officer claims that as part of the existing house was used to form the new dwelling it is categorised as a conversion which required the building to be empty for 10 yrs prior to conversion.
This is true that it is a conversion but is something that I wish to dispute as all but 1 wall was demolished to construct the new house. Clearly I have created a new dwelling but the HMRC disagree.

I can get the case reviewed by another officer and appeal. Can you offer any advice please.

greybags1
Posts:47
Joined:Tue Jan 31, 2017 10:41 am
Location:NE Scotland

Re: DIY tax refund

Postby greybags1 » Fri May 11, 2018 2:39 pm

Try Section 3 of VAT Notice 708.

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: DIY tax refund

Postby les35 » Fri May 11, 2018 5:43 pm

The HMRC correspondence will indicate a 30 day limit to seek a review.
But, you will need a strong case to overturn a HMRC decision on the facts you have described. Where a property was previously used as a dwelling, the DIY scheme does provide for certain historic time limits, both for reduced rate conversion/refurbishment services, and for the DIY scheme.
The question as to whether you created a new dwelling, or something different, is a technical one. I am happy to review any correspondence if that would assist.


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