VAT reclaim on holiday letting self build

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I started a self build 2 years ago with the aim to live in it. Since Covid and a reduction in income I have been forced to think about renting the house as a holiday let. Can I still claim my VAT back?  For clarity by self build I mean new build. Tradesmen did most of the work.

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By lionofludesch
09th Mar 2021 16:18
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By Jason Croke
09th Mar 2021 16:37

Self builds are designed for individuals to build a house (whether personally or via contractors) and for the individual to live in the house, the purpose is to put the individual in the same position as someone buying a new house from a house builder.

If your intention is to operate the property as a holiday let, that is clearly a business activity, so you could register for VAT and reclaim all your inputs (not just on the build but on marketing, etc) although you would have to charge VAT on your rentals.

Would you also need to revisit your planning permission, as consent presumably given on basis it was a family home, not a holiday rental property?

HMRC guidance on VAT here scroll down to the bottom "change of intention".

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