Kevin Reed, Accountancy Age, Monday 21 June 2010 at 12:24:00

VAT now recoverable on holiday homes building for private purposes


Individuals building holiday homes will now enjoy a VAT break similar to thatoffered for building their own homes.

Constructing holiday homes or converting non-residential buildings in holidayhomes will now have VAT recoverable on the cost of building materials and onconversion services.

"It has long been an anomaly that if the same person were to build or converta property for holiday lets it would not attract the same VAT treatment as ifbuilding their own home,? saidJamesCowper VAT director Terry Dockley. ?This ruling makes a lot ofsense."

HMRC has backdated the new ruling, allowing claims for work undertaken in thelast four years.

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