Readers' forum: Change of heart

I act for a builder who bought a plot of land in his daughter’s name a couple of years ago for £250 000. He was going to build a house on the plot to sell but is now having a rethink and his preferred choice is for him and his wife to transfer the land into their joint names and it would become their only or main residence. No building work has currently been undertaken.

My initial thought was that he could claim VAT on the building materials and professional fees through a DIY claim to HMRC. He has suggested setting up a company to buy the materials and do the building work as a partnership with his wife so that VAT is reclaimed as the project progresses rather than when it is completed with a DIY claim.

The company would also employ the architects and surveyors and the charge from...