Value Added Tax Act 1994 section 35

Refund of VAT to persons constructing certain buildings

Section 35 allows individuals who are not acting in the course of business to claim a refund of VAT incurred on building materials and, in the case of residential conversions, contractor services, when constructing dwellings, buildings for relevant residential or charitable purposes, or carrying out residential conversions of non-residential buildings.

• Individuals carrying out qualifying construction works outside the course of business can claim a VAT refund on building materials incorporated into the building or its site
• Qualifying works include constructing dwellings, buildings for relevant residential or charitable purposes, and converting non-residential buildings into dwellings or relevant residential use
• For residential conversions, a VAT refund can also be claimed on contractor services, provided the contractor is not acting as an architect, surveyor, consultant or in a supervisory capacity
• Claims must be submitted within the prescribed timeframe, in the required format, and with supporting documentation as specified by HMRC, who may request further evidence before determining a claim