Brian Lawton’s Denied VAT Refund Claim: Extension Ineligible Under DIY Housebuilders Scheme

• VAT DIY Housebuilders Scheme allows VAT refunds on certain construction projects
• Only one claim per project is typically allowed
• Claims must be made within 3 months of completion
• Brian Lawton’s first claim for barn conversion was approved and paid
• Second claim for extension to existing barn conversion was denied
• Second claim denied due to legal basis excluding extensions from eligible constructions
• HMRC upheld denial of second claim, citing legal basis and inability to combine completion certificates
• Tribunal decision confirmed only one claim allowed and extensions to existing dwellings not eligible
• Key principle: DIY VAT scheme for new dwellings or conversion of non-residential buildings, not for extensions or alterations to existing dwellings.

Source: bailii.org

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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