RECLAIMING VAT
One of the major benefits of building your own home is that you can reclaim VAT using HMRC’s VAT431NB form. This includes materials that are fixed into the house. The interpretation of this can be complex. For instance, you can reclaim VAT on timber flooring, but not carpet. You cannot reclaim VAT for design fees or services. You can only make one claim, so keep your VAT receipts safely in one place.
CIL EXEMPTION
The Community Infrastructure Levy (CIL) imposes a fee on the creation of new homes, which is determined by the local authority and is based on the size of the house. The good news is that, subject to certain criteria, self-builders are now exempt from paying CIL. That said, you’ll need to be extremely careful…
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Homebuilding & Renovating (Digital) - 1 Issue, July 2022