D-I-Y Housebuilders Scheme & Planning Permission

HMRC rejected a claim worth approximately £12,000 made by Miss Marie Reynolds under the D-I-Y Builders Scheme on the basis that the works undertaken were not ‘lawful’ and did not comply with the obtained planning permission.


Within the initial application for planning permission, it was specified that the works originally intended to consist of an extension at the back of the property and the construction of a first floor above the existing structure for which planning permission was granted. However, during an exploratory investigation it was found that the existing structure was constructed on an inadequate foundation and so the existing building was required to be demolished and rebuilt.


However, as the planning permission that had been obtained did not cover the demolition and rebuilding of the property, and nor could this approval be obtained retrospectively within 3 months of the completion of the building, the First-Tier Tribunal rejected Miss Reynolds’ appeal against HMRC’s initial decision. 


To avoid falling foul of strict legislative requirements surrounding D-I-Y Housebuilders claims, please clarify your position prior to submitting a claim by speaking to one of our expert consultants on our free VAT helpline.

Get in Touch