In Roy Tabb v HMRC [2018] TC6870 a DIY Housebuilder successfully challenged HMRC's interpretation as to whether the demolition and rebuild of an annex resulted in a new dwelling or was merely an extension.

VAT DIY housebuilder refunds can only apply to newbuild properties; conversions, alterations and extensions don’t qualify.

The FTT agreed that the new property was an extension or enlargement of the prior building however that also created a new dwelling and the claim was allowed.

Useful guides for our subscribers

VAT: DIY Housebuilders Scheme 
It is possible to recover VAT on constructing a new residential dwelling, or dwellings, even where there is no planned sale of the property.

VAT: Dwellings
What is the VAT treatment for construction, conversion, sale, and letting of a dwelling?

VAT: Land & Property: At a glance
Handy guide summarising which rate of VAT applies to what type of build project

 External links

Roy Tabb v HMRC [2018] TC6870