The VAT tribunals recent decision that the “DIY Housebuilders and Converters VAT Refund Scheme” can now be applied to holiday homes will provide a windfall opportunity for many holiday home owners.

HM Revenue & Customs (HMRC) concedes that the repayment claim of Input VAT is permissible for VAT incurred on certain services and building materials incurred by individuals during the constructing of holiday homes or the conversion of non-residential building into a holiday homes. The decision will apply to projects completed within the last four years and three months.

Previously HMRC would not apply this concession to holiday homes, as their supply by a developer attracts VAT at the standard rate (currently 17.5%).

Please feel free to contact Moore Hill Accountants of Warrington WA3 if you require further assistance with VAT, Property or General tax related issues on 01925 830830.