HMRC’s guidance: VAT refunds for new builds if you are a DIY housebuilder which explains if a person can claim a VAT refund using the DIY housebuilders scheme when they are building a new house has been updated.

The section ‘Claims rejected or not paid in full’ has been updated with what to do if you think HMRC has missed key information or misunderstood something in your claim.

The options are:

• send HMRC more information
• ask for a review
• appeal to a tribunal

The DIY housebuilders’ scheme overview

You will not be charged VAT if you buy a new house from a property developer – because the sale of the house is be zero-rated.

If you build a house yourself, you will not benefit from this zero-rating.

The DIY housebuilders’ scheme allows you to claim back VAT incurred on building materials you have bought. This is similar to buying a new house at the zero rate.

More on the scheme here and Top Ten Tips here.