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News

Can you solve the housing crisis and win £50,000!

The Richard Koch BreakThrough Prize is this year offering anyone the chance of winning £50,000 for an essay on creating a popular policy to rejuvenate our property-owning democ....

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Teignbridge District Council brings on a range of Custom and Self-build opportunities

Thanks to its percentage rule for serviced plots, Teignbridge District Council is permissioning a range of opportunities for Custom and Self-builders in the South West.

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Community groups should take up learnings from free Right to Build Expos

The Right to Build Task Force has announced four more Expos fo....

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NaCSBA welcomes Kit Malthouse to the role of Housing and Planning Minister

Kit Malthouse MP has been appointed Housing and Planning Minister, following Dominic Raab’s move to the be the Secreta....

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Oakwrights brings on nine custom build plots in Herefordshire

Timber-frame manufacturer Oakwrights is bringing nine Custom Build plots to market in H....

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Case Studies

Bath Street Collective Custom Build

Bath Street Collective Custom Build

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Planning for retirement with Potton

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Bakers Shaw

Bakers Shaw mixed build-method Passivhaus

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Beattie Passive house

Manx passive home

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Contemporary Timber Frame Home

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Passivhaus Family Farmhouse

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Steel Farm

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Merlin Haven

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Timber Frame Home, Ventnor

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Aldcliffe Yard, Lancaster

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Walthamstow Social Rent Scheme

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Prefabricated Passivhaus bungalow

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Cookham Dean, Berkshire

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Harvest House

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Bickleigh Eco Village, Devon

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Stoke-on-Trent Serviced Building Plots

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Forevergreen House

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Housing People Building Communities

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Sülzer Freunde, Cologne

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Manor Farm, Kirton

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Straw-baling, Perthshire

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Findhorn

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Almere, Holland

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Hockerton

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Top tips

Utility Connections

Utility Connections Read more

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VAT

VAT
  • Most selfbuilders are able to either pay no VAT or to reclaim much of the VAT that they pay for materials. HMRC has forms you can download for up-to-date information on VAT and selfbuild. Notice 431NB for newbuilds, 431C for conversions. There is also more information at this site.

But the rules are complex and not everyone can reclaim VAT.
  • If you are extending or renovating an existing house, you must pay VAT at 20%.
  • Creating a separate building or annexe doesn’t count as new build: VAT is 20%.
  • Building holiday lets or a building to rent counts as a business use and VAT is due at 20%.
  • Converting a non-domestic building into a home counts as new build: see notice 431C
  • There is an intermediate rate of VAT (5%) which applies to some works, for instance turning a house into flats, or flats into a house, or for work on a house unoccupied for more than two years. But the work cannot be done on a selfbuild basis — you have to employ a VAT registered contractor.
  • Listed buildings have some very complex VAT rules — refer to HMRC.

If you are eligible to reclaim VAT, then you have to keep very good records as you have to present your original VAT invoices at the end of the job. Generally, labour only and supply and fix invoices should be VAT free on new builds, but different rules apply on conversions.