Building your own home or converting a property? You may be able to reclaim VAT on construction costs, potentially saving thousands. Many homeowners and self-builders don’t realise that HMRC’s DIY House builder Scheme allows VAT refunds on eligible materials.

📌 What’s Covered?

• New builds – If you’re constructing a new home from scratch, you can reclaim VAT on materials.
• Conversions – Turning a non-residential building (e.g., a barn, warehouse, or office) into a home may qualify.
• Derelict properties – If a residential building has been empty for 10+ years, VAT on materials may be reclaimable.
• Extensions creating a new dwelling – A separate self-contained unit (e.g., a flat built on top of an existing building) could be eligible.

📌 What’s Not Covered?

• VAT on labour costs (only materials qualify).
• Standard home improvements like loft conversions or refurbishments.
• Fitted furniture (except kitchen units) and most electrical appliances.

📌 How to Claim?

• Check eligibility – Your project must meet HMRC’s criteria for VAT recovery.
• Keep all invoices – Only VAT on qualifying materials can be reclaimed.
• Submit your claim – A single claim must be made within six months of completion.

Many homeowners miss out on VAT refunds simply because they’re unaware of the rules. If you’re planning a project, understanding what you can and can’t claim could mean significant savings on your build costs. If you’re unsure whether your project qualifies, now is the time to check—before you start spending!