In Andrew Ellis and Jane Bromley v HMRC [2021] TC08277, the First Tier Tribunal (FTT) found that more than one VAT repayment claim could be made by DIY housebuilders during construction, despite HMRC’s policy to the contrary.

The DIY housebuilders' scheme allows VAT to be recovered on building materials purchased for a self-build project. This puts DIY housebuilders in a similar position to those who buy a zero-rated house built by a property developer.

The notes to the claim form (VAT431NB) state HMRC’s policy, “You can only make one claim and your claim must be made within three months of the building having been completed”.

The FTT allowed the appeal. It found that:

Useful guides on this topic

Land & Property: DIY Housebuilders scheme
It is possible to recover VAT on constructing a new residential dwelling, or dwellings, even where there is no planned sale of the property. This recovery can arise under the special refund scheme for DIY housebuilders.

Land & Property VAT (Subscriber guide)
An outline of the VAT treatment of some of the more common supplies of land and property.

Land & Property: Dwellings
What is a dwelling for VAT purposes? What is the VAT treatment for construction, conversion, sale, and letting of a dwelling?

Land & Property VAT at a glance
A summary of VAT on common land and property transactions. 

External link

Andrew Ellis and Jane Bromley v HMRC [2021] TC08277

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