What VAT discounts can I get when renovating in NI?
In this article we cover:
- Main VAT exemptions for NI renovations
- VAT exemptions for new builds in NI
I’m considering a renovation in NI but hear I won’t have to pay VAT if I build new instead; how do the two options compare from a VAT point of view.
Astrid says: New builds in NI are indeed exempt from paying VAT, but only on building materials, for what the HM Revenue & Customs refers to as ‘DIY House Builder’.
You qualify if you’re building the house to be used as a family home or holiday house (for you or relatives); if you buy a house from a developer and fit it out yourself you also qualify.
You must pay the VAT as you go and apply for the refund no more than six months after finishing, which usually means the date on which you got your building control certificate of completion. Keep all of your receipts.
You do also get VAT back on conversions and change of use where the property has not been occupied for 10 years. Homes that have not been lived in for at least two years prior to works commencing qualify for the reduced VAT rate of 5 per cent.
The zero VAT rate also applies to work done for someone with a disability or terminal illness. Also note that the reduced VAT rate of 5 per cent applies to mobility aids, heating and security work for people over 60.
Find more information here.
