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. One VAT reclaim is submitted when the property has been completed.
You may be eligible to make a claim if you are constructing a qualifying:-
– Dwelling to be used either by you or your relatives as a family home for residential or holiday purposes.
– 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. HMRC VAT office criteria expand on the points listed above, and we will assess your position on consultation.