VAT refunds for new builds if you’re a DIY housebuilder

A new build is a building that has been constructed from scratch and will generally not incorporate any part of an existing building.

If you’re converting an existing building into a dwelling, you’ll need to read VAT refunds for conversions if you’re a DIY house converter.

You’ll not be charged VAT if you buy a new house from a property developer. This is because the sale of the house to you will be zero-rated.

If you build a house yourself, you’ll not be able to benefit from the zero-rating.

The DIY housebuilders scheme allows you to claim back VAT for building materials you have bought. This is similar to buying a new house at the zero rate.

You can make a claim for building materials if you have planning permission to do one of the following:

Types of new builds not eligible for the scheme

You are not eligible to use this scheme if you’ve:

You can claim for the VAT on building materials incorporated in the building (or its site).

You’ll need to understand the VAT costs and what you can claim for before starting a self-build project.

To claim a VAT refund, you must show evidence that the works are lawful. You must also make sure that planning permission has been granted.

You’ll need to send us a copy of the planning permission, which will be either: