Hope you can assist us, we purchased a building plot in 2007 for a selfbuild, we started the project in 2009 & will be complete next month.We have tried to sell the house we currently live in but have not been able to find a buyer, it looks as if we will be forced to either let our new property or even try to sell it.Can you confirm that if we sell the new house we will have to pay CGT but can we still claim back VAT & if so will it still be the selfbuild vat claim? Any assistance would be greatly appreciated.Mark A
Province/Country relating to question: suffolk
We have only tried to sell our current home.
HiThanks for your question You will not pay capital gains on the home - as this has been your main residence throughout - and if you move out of it- you have up to 36 months before capital gains becomes an issue - as the last 36 months of this properties ownership is covered by the private residence relief rules.If you sell the new house, then this will be liable to capital gains as you have never used it as your main residence. And this also applies if you chose to let it out for any period of time.Regarding VAT - you should have an eligible claim on the build itself bit no any services engaged in undertaking the build. The claim must be made within 3 months of completion of the build (when you have the certificate of completion) I have added a link here which details the information you need and how to make this claim - However I should point out - that this applies for builds that you intend to live in - so if you sell without making this your home - then you will not be eligible for a VAT refund, so it might be worth moving into the new build, sell the current home, during which time you have 36 months to do so, before capital gains becomes an issue.ThanksSam
Is there no way that we can claim back the VAT because if we are forced to sell our new house we expect to pay CGT, selling our existing house is a problem.
HI MarkI am afraid not,unless the new build becomes your home, as previously advisedThanksSam
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