Selfbuild Vat Reclaim

If the place is lying vacant for at least the last three years, the rate will fall down to around 5% providing the work is handled by a VAT registered builder - there is no DIY VAT refund scheme for renovators equivalent to the one for self-build and conversion.

For selfbuild vat reclaim, renovating or restoring an existing place will qualify for reclaiming VAT paid out, unless the property has been empty for the last ten years - in which case it will be treated as a conversion. You can reclaim the VAT paid on certain goods at the end of the build, if the new house is a private domestic residence.

You will need detailed proof of VAT paid on all the goods for which a claim is to be made. Exclusions for reclaiming VAT include VAT paid on professional fees (unless included as part of a design and build contract); VAT paid out on the hire of plant, scaffold and machinery; VAT on delivery and pallets (returnable or not) and any VAT wrongly charged on labour and materials supplied by builders or subcontractors that should have been zero-rated.

When seeking self build finance, the key elements to consider are the manner of the lending and any conditions of their lending. These two need to be considered carefully to avoid possible financial hardship and cash flow difficulties.

As part of the self build finance the lender usually advances the money to you in five steps. This is in order to stop cash flow being a problem.