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Where Taxpayers and Advisers Meet

Vat Refunds for DIY Housebuilder - Conversion

Ravman33
Posts:1
Joined:Fri Jun 08, 2018 1:07 am
Vat Refunds for DIY Housebuilder - Conversion

Postby Ravman33 » Fri Jun 08, 2018 9:59 am

Hello,
I am looking for some advice as to whether I can make a VAT refund claim for a conversion. We purchased a four bedroom house last year and during the process we discovered that the annex building adjoining the property had previously been used for commercial purposes this lead to problems obtaining a mortgage with several lenders who would not lend. The situation was eventually resolved and we completed the purchased of the house, subsequently we were able to get change of use form commercial to domestic use through the VOA Valuation Office Agency. We are now in the progress of renovating the annex to create two further bedrooms, a kitchen, dining room and bathroom. The question is can we claim a VAT refund on the conversion work, I think we qualify as the building has never been a house and was an office previously and also it has not been occupied as a house for over ten years, my only concern is that the building is adjoining the existing house although the conversion might be classed as an individual dwelling if needed for the purposes of a claim. We don't want to blindly apply and find ourselves trying to prove a case but we would be looking at a refund of around £10,000 and need to put the best case forward first time.
Any advice would be greatly appreciated.
Thank you

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

Re: Vat Refunds for DIY Housebuilder - Conversion

Postby les35 » Sun Jun 10, 2018 8:20 pm

If you are creating a new dwelling, then there are two issues:
1. reduced 5% rate for conversion works; and
2. DIY claim of 5%, and any purchases of goods.
But you should have a specialist look over the Planning Permission, and other material. (HMRC will do this anyway, and reject a DIY claim if anything untoward is found.)

davebrownvat
Posts:60
Joined:Mon Jul 20, 2009 4:37 pm

Re: Vat Refunds for DIY Housebuilder - Conversion

Postby davebrownvat » Sun Jun 17, 2018 8:48 am

It's all down to what the planning permission says. Does it say "...extension....", or does it say "Create new dwelling...."? If the latter, you have a chance, but again there might be small print in the conditions attached to the permission, which could blow it.

If it's merely "....extension..", you have no chance.


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