Building a new home and VAT

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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.