VAT Refund Scheme for Holiday Home Owners

The VAT: DIY Housebuilders and Converters VAT Refund Scheme now applies to holiday homes following a recent decision by the VAT tribunal. These changes represent a windfall for some very lucky holiday home owners.

Input VAT repayment claims can now be submitted under the following circumstances: where VAT is incurred on the cost of building materials, as well as certain services incurred by an individual in constructing a holiday home or converting a non-residential building into a holiday home.

This has been granted by HM Revenue & Customs (HMRC) and applies to works completed in the past four years and three months.

What is the DIY Housebuilders and Converters Scheme?

This scheme was first introduced in 1974 and allows refunds of VAT incurred on the cost of building materials and certain services for private individuals. It ensures that self-builders are not put at a disadvantage when compared with individuals who purchase a new build or conversion from a developer.

How do I claim?

A claim is only possible if a certificate of completion was issued within the last four years and four months from 15 June 2010. All claim forms should be accompanied by:

  • Planning Permission
  • Certificate of Completion
  • Building Plans
  • All original VAT invoices, bills and credit notes

Claim forms are attached to the following forms:

  • VAT 431NB: VAT refunds for DIY housebuilders (new houses)
  • VAT 431C: VAT refunds for DIY housebuilders (conversions)