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Where Taxpayers and Advisers Meet

VAT on new build on vat return

kiwi0206
Posts:1
Joined:Tue Mar 14, 2023 11:41 am
VAT on new build on vat return

Postby kiwi0206 » Tue Mar 14, 2023 11:48 am

Hi,

I wonder if someone could point me in the direction of some case law on a DIY new build vat claim.

I am a small 'farmer' that receives grazing rents for land that i rent out. I am VAT register and i have converted a barn into my dwelling.

I am been claiming vat on this new build on my quarterly VAT returns rather than filing a self build claim after completion.

First, can someone tell me if that is ok to do?
Secondly, I want to be able to find some solid case law where this has been contest and granted in favour of the tax payer.

Many thanks

Hayes Accountants & Tax Consultants
Posts:7
Joined:Fri Mar 17, 2023 8:02 am

Re: VAT on new build on vat return

Postby Hayes Accountants & Tax Consultants » Fri Mar 17, 2023 2:02 pm

Hello,

If you’re a DIY builder you may be able to reclaim VAT when building a new home or converting a non-residential building into a home.

You can apply for a VAT refund on building materials and services if you’re:

building a new home
converting a property into a home
building a non-profit communal residence, for example, a hospice
building a property for a charity
This is known as the ‘DIY housebuilders’ scheme’. You can only make one claim for a VAT refund under the scheme.

The building work and materials have to qualify and you must apply to HM Revenue and Customs (HMRC) within 3 months of completing the work.

Should you have any further questions regarding this kindly email us your query @ www.hayes-accountants.co.uk Email; info@hayes-accountants.co.uk.

Regards

Lambs
Posts:1606
Joined:Wed Aug 06, 2008 3:15 pm

Re: VAT on new build on vat return

Postby Lambs » Fri Mar 17, 2023 9:08 pm

H,

Not sure that

Ellis and Bromley v HMRC [2021] TC08277

endorses your contention that a homebuilder may submit only one claim per new dwelling. Only a First-Tier case but just because HMRC has since doubled-down on its stupidity, doesn't mean it ain't stupid.

Regards,

Lambs


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