Q: I’m converting a non-residential property into my new home. I’ve heard that I may be able to use the DIY Housebuilder Scheme but am unsure what it is. Can you explain?
A: This is a scheme provided by HMRC that allows people converting an existing building into a new home to reclaim some of the VAT they’ve paid – mainly on materials used in the project.
It applies to specific types of buildings being converted into residential homes: barns, old churches, schools, warehouses and business premises.
VAT on building materials can be a substantial cost, so knowing how to apply correctly – and what qualifies – can significantly reduce the overall budget of a conversion project. Claims need to be made within six months of project completion.
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