VAT431NB: reclaiming VAT on a new home you build yourself

Who needs it

• People building a new home with planning permission, for themselves or relatives to live in or use as a holiday home.
• People who buy a new shell from a developer and fit it out themselves.
• Those constructing a new building for a charitable or relevant residential purpose.
• Not for homes you intend to sell, let or use for business; conversions of existing buildings have separate guidance.

What you need before you start

• A building regulation completion certificate. Copies are accepted.
• Planning permission: full permission, or outline permission plus approval of reserved matters (both parts if issued in two).
• Plans of the building.
• Invoice details for the materials, on the paper form.
• In Scotland, any Section 75 Agreement your planning permission is subject to.

How to file VAT431NB

1. 1Check the home qualifies: a new dwelling with planning permission, for you or your family, not for business use.
2. 2Collect copies (not originals) of your completion certificate, planning permission, plans and invoices.
3. 3Claim online through HMRC's service, or complete the 11-page VAT431NB PDF if you can't use it.
4. 4Post a paper claim to BT&C VAT, HM Revenue and Customs, BX9 1WR. HMRC won't accept hand-delivered claims.
5. 5Send in any further invoices for a paid claim within 4 years of completion if needed.

Who can claim

HMRC's DIY housebuilders scheme is for a new dwelling built, with planning permission, as a family home for residential or holiday use by you or your relatives. Buying a new shell from a developer and fitting it out yourself also counts.

It isn't open if planning conditions stop the property being used or sold separately, or if you intend to sell, let or use it for business. A loft conversion into a flat doesn't qualify; other conversions are covered by separate HMRC guidance. HMRC's claim service also covers new charity buildings.

What you can and can't claim

You can claim VAT on building materials incorporated into the building or its site during construction, including goods you buy and give to your builder.

You can't claim for fitted furniture other than fitted kitchen furniture, most electrical and gas appliances, carpets, garden ornaments, sheds, greenhouses, plant, tools, consumables not built in, or the land.

Time limit and one claim

For buildings completed on or after 5 December 2023, claim no more than 6 months after completion, counted from the completion certificate date or other evidence of completion. Before that date the limit was 3 months.

You can make only one claim under the scheme. If a claim is paid, you can still send additional invoices up to 4 years after completion.

Scotland

HMRC runs the scheme across the UK. In Scotland, a Section 75 Agreement is the equivalent of an English Section 106 Agreement, and you must send it with the claim if your planning permission is subject to one. Completion is shown by a certificate issued by the local planning authority.

Common mistakes

• Claiming for items HMRC excludes: most fitted furniture other than kitchens, most electrical and gas appliances, carpets, garden ornaments, sheds, greenhouses, tools and plant, and building land.
• Sending originals. HMRC can't return documents, so send copies.
• Leaving documents out. Missing paperwork can delay or reject the claim.
• Planning to let or sell the property. Business use, including a home you need because you live where you work, isn't eligible.