New Build and VAT Free query

boardy2

Hi All,


I am in process of purchasing a new build property, completion estimated at the end of this month.


The property is with central heating but no gas fire and I have been led to believe during a visit to a gas fire showroom that new builds can receive VAT free against the Fire Purchase.


We are also in need of some built in furniture, would this also attract a zero VAT rating?


Please can anyone advise what the current ruling is as there is a substantial saving to be made over these two purchases alone.


Thanks in advance.


Chris

sheramber

https://www.gov.uk/vat-building-new-home/overview

Private_Church

VAT on newbuilds can only be claimed by the builder and even then it can only be claimed in one single claim, usually when the builder has finished the house.

Buyers can't claim the VAT back unless you are building the house yourself and if I remember correctly fitted furniture is chargeable for vat.

teddysmum

Neither a gas fire nor fitted furniture are essentials and many newbuilds do not have a fireplace, so one would not expect them to be VAT free.


However, one site, which sells gas fires and fireplaces suggests that it is possible to get the fire VAT free, but subject to conditions and asks you to check the latest regulations. However, it does say that the work has to be done before completion, which suggests it would be done by a builder, as they wouldn't let a buyer interfere with a building which was not yet legally theirs.

boardy2

Thanks for the replies. If the shop sells me the fire vat free then who am I to argue ��

ComicGeek

The shop won't take off the VAT from the sale price, they can't - you'll have to pay the full price, they give you a VAT receipt, and then you claim this back from the Govt. Although you won't be able to as it's not a valid scenario, so the shop's talking rubbish.

As it's not a self build you can't claim the VAT back. And I can't see that any builder would buy and install a gas fire for you.

Fixed furniture isn't zero rated VAT either.

Sorry, you'll just have to negotiate to get the costs down and pay the VAT!

brennan247

Everybody is just speculating looking at replies. Has anybody got the actual answer on this? Fireplaces are on the list of approved items, not that I want one, but I would like to know if you can claim back once you've moved into a new build for the HMRC materials.

00ec25

brennan247 wrote: »

Everybody is just speculating looking at replies. Has anybody got the actual answer on this? Fireplaces are on the list of approved items, not that I want one, but I would like to know if you can claim back once you've moved into a new build for the HMRC materials.

the actual answer is in the link given in the second post

are you doing the building work yourself or is a builder doing the work for you?

if self building, did you do the entire build from scratch or did you buy a shell from a developer and are now fitting it out?

the costs of a fireplace and surround can be reclaimed if you meet the qualifying conditions - read the link in full, VAT is about details, not one line answers.

glasgowdan

I see very clear answers above, though not the answer you want.

Doozergirl

glasgowdan wrote: »

I see very clear answers above, though not the answer you want.

Me too. It's all up there.

Only one person, the builder of the house - be that developer, contractor or self builder - can claim back the VAT on materials or receive zero rated goods and services on a new build.

People who buy new builds don't qualify for the relief.

BLOW_FLY

Doozergirl wrote: »

Me too. It's all up there.

Only one person, the builder of the house - be that developer, contractor or self builder - can claim back the VAT on materials or receive zero rated goods and services on a new build.

People who buy new builds don't qualify for the relief.

I know, but this is not the answer he wants.....

BF