The VAT Housebuilders Scheme enables any person who is building their own home, or converting a non-residential building to their own home, to reclaim the VAT they pay on building materials.

Legislation will come into force on 5 December, introducing notable changes to the scheme that should make the VAT claims process quicker and more efficient for the claimant.

The new measures

  • Provides claimants with the option to submit their VAT refund claim digitally (the existing process for making paper-based claims remains as an option for those that wish to use it);
  • Extends the time limit for completion of the claims from 3 months to 6 months from the completion date of the build; and
  • Removes the requirement to provide invoices at the point at which claimants submit their claim.

Benefits of digital claims

The new digital claims process includes hints for completing the claim and functions to minimise errors – making the administration process easier. Providing a digital option for making claims supports HMRC’s objective of making tax digital.

More time to gather information

Under the scheme, claimants are only allowed to submit a single claim. The move from 3 months to 6 months for claims to be submitted provides a welcome increase to the amount of time claimants have to gather all the required information, helping to ensure there are no omissions and minimising errors.

How M+A Partners can help

For any queries on the changes to the VAT Housebuilders Scheme, please get in touch with our expert or your usual M+A Partners contact.

Our property tax specialists are able to advise on eligibility for VAT reclaims for those building their own home or converting a non-residential building to their own home.

Our Expert