Chartered tax advisers team

DIY Housebuilders

Two recent cases demonstrate how easy it is for DIY Housebuilders to get tripped up by the rules.

In Reeves v HMRC the tribunal held that the retention of a gable wall when converting a 2 bed bungalow into a 4 bedroom house meant that there was no ‘new build’. That decision rendered the input VAT irrecoverable.

The definition of ‘new build’ can include the demolition and rebuilding of a structure where a single ‘facade’ has been retained, but a gable wall is not a facade.

Another condition of a successful DIY claim is that planning permission has been granted for the  building at the time of the claim.

In Kernohan v HMRC planning permission was only received retrospectively, so the claim failed.

If you are considering a self-build project, don’t risk losing 20% of the build costs  on a ‘technicality’. Give us a call today and get professional help.


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