My VIP Tax Team VAT question of the week: DIY claim and EU vat
Entitlement to VAT recovery for self-builders and converters is granted by Section 35 of the VAT Act. Historically it included reference to VAT charged in other member states in Section 35(3). However, since the departure of the UK from the EU, this sub-paragraph has been removed. The provision has been added in the new Schedule … Continue reading “My VIP Tax Team VAT question of the week: DIY claim and EU vat “
VQOTW: DIY Claim for a Holiday Home
The DIY scheme is a means by which a person is able to recover the VAT incurred on the construction of a new dwelling for occupation by themselves or their family. This occupation can be a main residence or as a second home. This was not always HMRC’s policy but has been since 2010 following … Continue reading “VQOTW: DIY Claim for a Holiday Home“
VQOTW: DIY Claim by Builder
A. In order for an individual to reclaim VAT on costs incurred on constructing a new dwelling for his own occupation the DIY refund Scheme is the correct method. The DIY Refund Scheme allows a person to claim the VAT back on building materials purchased when a new house has been built for occupation by … Continue reading “VQOTW: DIY Claim by Builder“
My VIP Tax Team VAT question of the week: Building Upwards
This seems to be an increasingly common question of late, no doubt sparked by the recent change in planning rules allowing developers to add two extra floors to detached blocks of flats. The new permitted development right came into force on the 1 August 2020 and is set out as Class A, Part 20, Schedule … Continue reading “My VIP Tax Team VAT question of the week: Building Upwards “
My VIP Tax Team VAT question of the week: Goods supplied for use in accessibility adaptations
It is correct that, in limited circumstances, materials can be supplied on their own to a charity or disabled person ‘over the counter’ without building services and still be eligible for the zero rate. This is where they are supplied ‘in connection with’ a supply of services which is itself zero rated under VATA1994 Schedule … Continue reading “My VIP Tax Team VAT question of the week: Goods supplied for use in accessibility adaptations “
VQOTW: Renovation of an Empty Dwelling
Firstly considering the reduced rate, you are correct that the contractors will be able to charge this to the client for their work refurbishing and extending the property. However, it’s important to note that the scope of services included in the reduced-rating is much narrower than that for zero-rating the construction of a new dwellings. … Continue reading “VQOTW: Renovation of an Empty Dwelling“
