Claims for DIY self-build VAT refunds

The taxpayers who were brothers each built a five-bedroom detached house on land gifted to them by their mother.

The dispute concerned the statutory deadline for a VAT claim to be made to HMRC – this was no later than three months after the completion of the building (VAT Regulations SI 1995/2518 reg 200).

The brothers obtained planning permission in 2010 - in effect the start of the project. They moved into their properties in December 2012 and March 2013 but many rooms were still not functional. In May 2016 the council carried out an inspection of the houses but said there was work outstanding including landscaping in one of the houses and a disabled ramp in the other. This was eventually completed in December 2017 and the council issued the certificate of completion in January 2018.

The brothers made VAT claims under the...