To qualify for the VAT431NB DIY Housebuilders Scheme, the building must be a new qualifying dwelling constructed from scratch, you must be building it for your own use (or for a relative to use) as a home, and you must not intend to sell, let or use it for business purposes. Properties subject to planning conditions that prevent separate occupation or disposal, properties that incorporate too much of an existing building, and projects intended for sale or letting do not qualify.
An ineligible project produces a £0 reclaim — no matter how many eligible invoices you have collected. Eligibility must be confirmed before your first claim is submitted. HMRC will reject a claim if the project conditions are not met.
A genuinely new home built from scratch on a bare plot (or after demolition of an existing building) for you or a relative to occupy as a home. Also includes completing a new developer shell.
A new home built for use as a personal holiday property (not let commercially) can qualify under VAT431NB. The intended use for personal residential or holiday use is the key condition.
VAT431NB is not available where the property is being built for sale or commercial letting. If you intend to sell or rent the property after completion, the scheme does not apply.
Some planning permissions contain occupancy conditions (such as agricultural occupancy conditions) that restrict who can live in the property. These can disqualify a claim if they prevent separate occupation or disposal.
VATBuild is not affiliated with HMRC. References to HMRC publications are for informational purposes. Always consult a qualified tax adviser before submitting a reclaim.
VATBuild's project setup asks the key eligibility questions before you upload a single invoice — property type, planning permission, intended use, occupancy conditions and ownership structure. It identifies which HMRC VAT scheme applies and flags any eligibility risks before your claim is built, not after it is submitted.