Lee Sharpe looks at the mechanism designed to help people to reclaim VAT costs on building their own home, and some tips and traps for those hoping to make the best of their claim.
VAT on construction can be complex. For example, the VAT treatment of building a simple wall as part of a project might depend on:
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the category of building – residential, commercial, etc.;
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whether it is a repair to an existing property or new development;
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whether it merely extends an existing property or counts as a separate property in its own right; or
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its intended use once the work is complete.
It will also depend on whether we are considering the property asset overall or work being done on the property. For the purposes of this article, let’s assume we are
