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VAT Reclaim for new dwelling

james esau

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I am currently awaiting planning consent to change a 4 bedroom dwelling into two separate dwellings (a 3 bedroom house and 1 bedroom maisonette). 

The intention is to rent out the 3 bed full time and to Airbnb the 1 bedroom maisonette. Both properties will be individual dwellings with separate address etc.

Does anyone know if I am eligible for a VAT refund on the building works by creating the separate dwelling?

Many thanks


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Hi James 

Because it is a conversation and you are not converting a none domestic dwelling into residential, nor by the sounds of it, adding additional accommodation in the form of floor space to your conversion, this is not an easy question  to answer with a yes or no. Sorry.

A good accountant will know, and that is the person you need to be asking. Opinions on an open forum unfortunately may lead you to making very costly mistakes.

IF you can claim back read on:

If you can claim back the VAT remember it is for materials only. You file a form to HMRC within 3 months of conversation being completed.

Not all materials are included in the scheme. Kitchen cabinets are, fitted wardrobes and carpets are not for example. You will need professional advice to determine what is and what isn't.

If trades are supplying labour or labour and materials they need to be charging you at 5% VAT at source, but not every trade is included in the scheme...for example carpet fitting (as above). You cannot claim back VAT on Labour.

A good accountant will be able to tell you all this and more and how to get your trades to submit quotes displaying 5% VAT for labour etc.

VAT reclaim is not easy and that is the only advice I can give you.

Sorry I cant help further


Find me here ^^



Conrad Paton

+44 7957 959851




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