Self-Build Barn Conversion

Client: Private client
Project Value: £1.5 million
Estimated VAT Savings: £260,000
Location: Cotswolds

Overview

Landmark PT advised on the VAT treatment for the conversion and extension of a former agricultural barn into a high-end private residence in the Cotswolds. The project involved multiple trade contractors and extensive design input across structural, architectural, and interior packages.

VAT Issues

  • The project presented a range of VAT challenges, including:

  • Applying the 5% reduced rate for the conversion of a non-residential property into a dwelling.

  • Ensuring correct treatment for fitted joinery, bespoke kitchens, AV systems and interior finishes subject to 20% VAT.

  • Implementing cost apportionments across contractors where multiple rates applied.

  • Advising on the procurement and contractual structure to support correct VAT application throughout the works.

  • Preparation and submission of DIY converters VAT reclaim for the property owner

Our Role

We worked directly with the client, project architect and main contractor to:

  • Analyse the works and apportion costs between 0%, 5%, and 20% VAT rates.

  • Prepare detailed VAT schedules for contractors to follow during billing.

  • Advise on procurement documentation to maintain compliance and maximise VAT efficiency.

  • Provide ongoing project support and VAT verification as works progressed.

  • DIY converters VAT reclaim for the home owner

Outcome

Through detailed analysis and proactive involvement, the client achieved an estimated £260,000 VAT saving across construction costs, ensuring compliance with HMRC requirements while maximising available VAT reliefs.