VAT Refund Dispute: DIY Housebuilders’ Scheme and the Brian Lawton Case

• Brian Lawton appealed against HMRC’s refusal to pay a second claim under the DIY Housebuilders’ Scheme
• He made a second claim for VAT refund for an extension to an existing barn conversion, which HMRC refused
• The issue was whether it was possible to make more than one claim under the scheme for a project split into two phases
• Lawton argued that the projects were distinct and therefore eligible for separate claims, but HMRC disagreed
• The First-Tier Tribunal dismissed Lawton’s appeal, stating that only one claim could be made under the scheme
• The court emphasized the importance of adhering to the rules of the scheme and aligning completion for VAT purposes with original planning permissions
• The case highlights the significance of timing and following the scheme rules for recovering VAT in self-build projects.

Source: marcusward.co

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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