DIY VAT

[lesley]

I am hoping someone will have some advice/tips.

I have a new build, vat claim went in on time, but had it refuse on appeal too, my property which is the new build is my home, and I have out buildings that have planning for holiday lets, the only rebuild has been my home and they have refused, as my home is attached by planning to the lets, I have taken advice form accountants that have confirmed they cannot see any ways round it, but they do agree unfair, and there may be some way around this but they did not know. my arguement is the holiday lets are very unlikely to be done/complete as I am unable to get funds. which make the plan is redundant. as with the present climate the whole plan will not be complete. would that help advice with me with another appeal?

[Marie Stein]

Hi Lesley

Unfortunately I think your accountants are correct, as one of the main rules of the DIY scheme is that it doesn’t apply when the planning permission prevents the new dwelling from being sold or used separately from another property.

I appreciate it may seem unfair but the rules are there for a reason and in most cases, ensure that private housebuilders don’t get additional benefits than commercial housebuilders, who are also unable to recover VAT in similar situations.

I hope you’re able to find the finance to complete the project, I don’t know whether the planning office would consider changing the planning provisions so that your home can be sold/used separately from the other properties. It’s certainly worth asking the question.

Marie

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