What is the HMRC VAT431 DIY Housebuilder Scheme?

The VAT431 scheme allows individuals who build their own home (or convert a non-residential property into a dwelling) to reclaim the VAT paid on building materials. You submit a single claim to HMRC within 3 months of the building being completed, supported by planning permission, completion certificate and original VAT invoices. The scheme is detailed in VAT Notice 708.

Can I reclaim VAT on contractor labour for a new build?

For new builds, contractor services should be zero-rated (charged at 0% VAT), so there is no VAT to reclaim on labour. If a contractor charges you 20% VAT on work for a new-build dwelling, they may be applying the wrong VAT rate — raise this with them. You can only reclaim VAT on materials you purchased yourself with valid VAT invoices.

What is the deadline for submitting a VAT431 claim?

You must submit your VAT431 claim within 3 months of receiving your completion certificate (or the date the building is first occupied as a dwelling, whichever is earlier). Missing this deadline means you cannot claim. Start gathering invoices and paperwork well before completion.

What materials can I reclaim VAT on?

You can reclaim VAT on building materials that are permanently incorporated into the building — bricks, blocks, cement, timber, roof tiles, windows, doors, sanitaryware, kitchen units, plumbing and electrical materials, insulation, plasterboard, etc. You cannot reclaim VAT on tools, plant hire, architects fees, professional services, carpets (unless fitted), garden landscaping, or white goods (unless built-in).

Does the VAT reclaim scheme apply to extensions or renovations?

No. The VAT431 scheme only applies to the construction of a new dwelling or the conversion of a non-residential building into a residential dwelling. It does not apply to extensions, renovations, refurbishments or repairs to existing dwellings. There are separate rules for listed buildings which may qualify for reduced rate VAT.

VAT Reclaim Calculator — How Much VAT Can I Reclaim on My Self-Build?

VAT Reclaim Calculator — How Much VAT Can I Reclaim on My Build?

Calculate how much VAT you can reclaim on a self-build or conversion to residential using the HMRC DIY Housebuilder Scheme (VAT431).

Property Type

New builds and conversions to residential are eligible

DIY Self-Build / Self-Managed Build

You must be building or managing the build yourself to claim

Total Materials Cost (inc VAT)

Total cost of materials you purchased including 20% VAT

Total Contractor Services Cost

Should be zero-rated (0% VAT) for new builds

How We Calculate This

This calculator estimates the VAT you can reclaim under the HMRC DIY Housebuilder Scheme (VAT431) for new builds and conversions to residential use.

New Build Rules

Materials purchased by you at 20% VAT: full VAT reclaimable
Contractor services: should be zero-rated (0% VAT) — no VAT to reclaim

Conversion to Residential Rules

Materials purchased by you at 20% VAT: full VAT reclaimable
Contractor services: charged at reduced rate (5% VAT) — this 5% is not reclaimable

How We Calculate

VAT is extracted from the inclusive price: VAT amount = price inc VAT / 6 (for 20% rate). For the 5% reduced rate: VAT amount = price inc VAT / 21. The reclaimable amount is then determined based on the property type and what is eligible.

References

HMRC VAT Notice 708: Buildings and Construction
HMRC form VAT431: DIY Housebuilder claim form
HMRC form VAT431C: Conversion claim form

Frequently Asked Questions

Last updated: February 2026

All calculations are estimates. Verify with your supplier.

VAT Reclaim Calculator — How Much VAT Can I Reclaim on My Build?

How We Calculate This

New Build Rules

Conversion to Residential Rules

How We Calculate

References

Frequently Asked Questions

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