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You do not qualify
Key points
- The DIY housebuilders scheme cannot be applied to ventures such as furnished holiday lets.
- In Philip Spani the First-tier Tribunal found that Mr Spani’s cottage was built in furtherance of a business.
- There is a distinction between a person building a holiday home as a second home versus a holiday let.
- The intended use of a building is key and the planning consent is strong evidence of this.
The current costs of house builds are incredibly high with building costs still rising. Pressure is therefore placed on the DIY housebuilders scheme which allows private individuals to claim back the VAT on the building materials used in constructing their own homes. With the staycation industry booming some may think that using this scheme in constructing a holiday home would be a wise move. However the recent case of Philip Spani (TC8916) has shown it cannot be applied...
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