HMRC has launched an online service to reclaim VAT for DIY housebuilders. This follows an announcement at the Spring Budget 2023 and an update at the Autumn Statement 2023.

The VAT DIY housebuilders scheme allows taxpayers building their own home to reclaim the VAT they pay on building materials incorporated into the building. This includes eligible goods given to a builder to incorporate into the building before the date of completion. 

The scheme also applies to individuals converting a non-residential building into their own home, as well as those constructing a new charity building. The charity building must be used solely for a relevant charitable purpose or a relevant residential purpose.

To support taxpayers making a claim, HMRC has also published new guidance regarding the scheme, depending on the type of claim being made:

• VAT refunds for new builds if you’re a DIY housebuilder
• VAT refunds for conversions if you’re a DIY housebuilder
• VAT refunds for constructing a new charity building

To make a claim, taxpayers will need:

• the building regulation completion certificate;
• evidence of planning permission; and
• plans of the building.

Once ready to make a claim, taxpayers can access the online service here:

• Claim a VAT refund for a new home or charity building if you're a DIY housebuilder
• Claim a VAT refund for a conversion if you're a DIY housebuilder

Taxpayers who cannot use the online service can still make claims using paper forms. However, claims made on paper forms will take up to twice as long as those made using the online service and are less likely to be accepted without query. The paper forms are available from the links above.

As previously announced, the time limit for making claims has also been extended for buildings completed on or after 5 December 2023. The time limit has been extended from three months after completion to six months after completion.