The application form has guidance on what building projects and materials qualify for a VAT refund. The basics are listed below. New homes The home must: be separate and self-contained be for you or your family to live or holiday in not be for business purposes (you can use one room as a work from home office) Builders working on new buildings should be zero-rated. You should not pay any VAT on their services. Conversions The building being converted must usually be a non-residential building. Residential buildings qualify if they have not been lived in for at least 10 years. You may claim a refund for builders’ work on a conversion of a non-residential building into a home. For other conversions builders can charge a reduced VAT rate. Communal and charity buildings You may get a VAT refund if the building is for one of the following purposes: non-business - you cannot charge a fee for the use of the building charitable, for example a hospice residential, for example a children’s home Building materials You may claim a VAT refund for building materials that are part of the building and cannot be removed without tools or damaging the building. What does not qualify You cannot get a VAT refund for: building projects in the Channel Islands materials or services that do not have any VAT - for example, they were zero-rated or exempt professional or supervisory fees - for example, architects or surveyors hiring machinery or equipment buildings for business purposes buildings that cannot be sold or used separately from another property because of a planning permission condition building materials that are not permanently attached to or part of the building itself fitted furniture, some electrical and gas appliances, carpets or garden ornaments

Fill in form 431NB to claim a VAT refund on a new build, or form 431C to claim for a conversion. You can only claim a VAT refund once. You must claim within 3 months of the building work being completed. Send your claim form to HM Revenue and Customs ( HMRC ). National DIY Team S1751 Newcastle NE98 1ZZ What you need to include You must include the following documents as part of your application: all original invoices a full set of building plans either Full Planning Permission, or both the Outline Planning Permission and Approval of Reserved Matters the Building Regulation Completion Certificate or other evidence the work is complete - there’s a list of accepted documents in the form If you’re claiming for a conversion, you must also prove the building had not been lived in for at least 10 years before the work started. You must send the original invoices, not copies. You can include copies of other documents. If an invoice is not in your name, you’ll need to explain why. If an invoice is in your business’s name, you’ll need proof that you’ve refunded the amount from your personal bank - for example, a bank statement. VAT invoices must be valid and show the correct rate of VAT or they will not be accepted. For invoices not in sterling, convert the amounts into sterling. How long it takes HMRC will write to you about when you can expect your VAT refund if your claim is successful. They will usually write to you within 6 weeks. Help with VAT for building materials Contact HMRC if you have further questions. DIY and House Building VAT Enquiries Team Telephone: 0300 322 7073 Monday to Friday, 8:30am to 4:30pm Find out about call charges

Building a new home and VAT

Overview

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.

There is a separate guide to VAT if you’re working in the construction industry.

View a printable version of the whole guide

Building a new home and VAT

Overview

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Building a new home and VAT

Overview

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