reclaim vat

robdelbing3_2

i am a self-builder who has just completed a barn conversion.the barn used to be for agricultural purposes but is now a residential property.i have spent around £110K converting.can i claim the vat back.if so how much will i get back approx.

Alan_M_2

You can reclaim VAT on new builds, not conversions or renovations.

If you think this could be classed as a new build (which I doubt very much) you should have been having this conversation with HMRC before the build started, not after the event.

chappers

Is it going to be your main residence or are you going to sell.

If for profit then no.

If your residence then yes, but only on the materials, you should have asked your builders to bill you zero rated for VAT purposes.

You have 6 months to reclaim the VAT.

If it is for profit and you plan to do it again and manage the build yourself, then set up a VAT registered limited company and contract the works to it make sure the company only makes a small or negligable profit but buy all the materials and sub-contract all the works through it, you can then claim the VAT back through the Ltd Co.
You really need to speak to an accountant on this.

You can claim on a conversion as long as it is from a non residential building to a residential one(a barn to house is a perfect example) I converted a watermill into a dwelling for a couple and they did a VAT reclaim,.
But as has been said it would have been far easier if you had set this up in advance, but it is possible to do it retrospectively, but you are still under the 6 month, from completion time frame.

ken_and_dot

Barn conversions attract VAT at the 5% reduced rate. As a builder I have carried out barn conversions for clients. I paid all bills for materials etc. and reclaimed the VAT as part of my normal VAT return and then billed the client at 5%. I also live in a converted barn which I managed myself and reclaimed the VAT, but this was some years ago and I cannot remember the details. Ring the VAT help line. If you can reclaim they will advise you and send you the necessary forms.

robdelbing3_2

i am keeping the house as my own residence and have all the receipts from my purchases.

chappers

Then yes you can claim the VAT on all your materials. You could have saved a bit more too as any VAT registered trades should have only charged you 5% VAT (sorry I was incorrect earlier as newbuilds labour is zero rated).