Readers’ forum: Housebuilder

I have a client who owns a VAT-registered building company and is looking to buy a plot of land to build a new house for him and his wife as their main residence.

He has asked whether it would be better for him to buy the land in his limited company and then claim all input tax on building materials and professional fees or buy the property jointly with his wife and claim any VAT on materials through the DIY scheme. Do readers have ideas on which is the best option?

Once the property has been completed it would be sold to him and his wife by the company anyway if this route was taken. Does this create a stamp duty land tax hurdle?

Query 19 250– Builder.

Reply by Milano

Invoices from the building company to the client should be zero rated.