There is no doubt that building your dream home can be an expensive undertaking, and you always want the process to be as cost efficient as possible. With our long experience of new build projects, we know exactly where and how savings can be made – and we have found that the current VAT rate of 0% for residential new build properties is a hugely beneficial saving for our clients.
The government introduced the 0% rate as a way to encourage more self build homes in the UK. It is a great incentive to act now to turn your dream into a reality, as that VAT saving can be re-invested into the project and help your budget stretch that little bit further. The VAT reclaim is valid so long as the property you are building meets the criteria for a new dwelling, and is to be a principle private residence – new build properties that will be used for business purposes are not eligible.
While not quite as generous as for new builds, significant VAT savings can also be made on barn conversions. VAT can be charged at a rate of 5% so long as the correct certificates are raised. As with new build homes, we are very familiar with the process, and are able to help our barn conversion clients deal with HMRC to arrange this saving for them.
If you are considering embarking on a new build project and would like to know more about the possible savings and efficiencies that can be made throughout the process, give us a call on 0117 924 8335 and we will be happy to discuss how we can help you.