VAT – DIY Housebuilders
The claim forms and HMRC guidance for homeowners who are claiming back VAT on the costs of building their own home have been revised.
There are two separate forms each with their own specific guidance. The first form (VAT 431NB) is for new builds and the second form (VAT431C) is for qualifying conversions i.e. the conversion of a non-residential property to residential.
The DIY housebuilders’ scheme is intended to ensure that a homeowner building a home can benefit from the general VAT rules which allow for the zero-rating of qualifying construction costs of new homes and certain conversion works.