TaxCorporate TaxHoliday home VAT exemption boost for private builders

Holiday home VAT exemption boost for private builders

VAT now recoverable on holiday homes building for private purposes

Individuals building holiday homes will now enjoy a VAT break similar to that
offered for building their own homes.

Constructing holiday homes or converting non-residential buildings in holiday
homes will now have VAT recoverable on the cost of building materials and on
conversion services.

“It has long been an anomaly that if the same person were to build or convert
a property for holiday lets it would not attract the same VAT treatment as if
building their own home,” said
James
Cowper
VAT director Terry Dockley. “This ruling makes a lot of
sense.”

HMRC has backdated the new ruling, allowing claims for work undertaken in the
last four years.

Further reading:

Departing
R3 head warns HMRC’s Time to Pay is abused

Manchester
United VAT case could set new precedent

Capital
gains tax and VAT red tape hurts SMEs, say advisers

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