How to claim back VAT on new build homes.

Purchasing a new build home can be an exciting and complex process, with many financial considerations to keep in mind. One area that buyers should be aware of is VAT (Value Added Tax), which can be claimed back on certain new build properties.
In this blog post, we’ll go over what VAT is, when it can be claimed back, and how to go about claiming it.

VAT, or Value Added Tax, is a tax that is added to the price of most goods and services in the UK. The current standard rate of VAT is 20%. This means that if you purchase an item or service for £100, you will actually pay £120, with the additional £20 being the VAT.

The items that VAT can be claimed back on include:

• Building materials used in the construction of the property
• Professional services, such as architects’ fees
• Some items of plant and machinery, such as boilers or heating systems

It’s important to note that VAT cannot be claimed back on the cost of the land or on the builder’s labour costs.

To claim back VAT on new build homes, you will need to fill out a VAT refund form. This can be obtained from HM Revenue & Customs (HMRC) by calling their VAT Helpline on 0300 200 3700.
You will need to provide the following information when filling out the form:

• Your name and address
• The address of the property
• The date of completion of the property
• The builder’s name and VAT registration number
• A description of the materials and services for which you are claiming the refund, along with the relevant invoices

It’s important to keep all invoices and receipts related to the purchase of your new build home, as these will be required when filling out the VAT refund form.

Once you have completed the form, you will need to send it to the VAT Claims Centre at HMRC. The address for the VAT Claims Centre can be found on the form itself.

A key point is that if you have purchased a system like a Rainwater Harvesting System, as it is supply only it is important that the builder orders the system as they are installing it and can prove to the HMRC that the system was installed at the property address.

Something unfortunately we cannot do as we are not installing the system.

It’s worth noting that there is a time limit for claiming back VAT on new build homes. You must submit your claim within three months of the date of completion of the property.

In conclusion, claiming back VAT on new build homes can be a complex process, but it’s important to be aware of your eligibility and to take advantage of any potential savings. By following the steps outlined in this blog post, you should be able to successfully claim back any VAT that you are entitled to.