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Information Sheet 7/08, September 2008

1 Introduction

Who should read this information sheet?

This information sheet will be of interest to house builders and their advisers.

What is this information sheet about?

This information sheet sets out HM Revenue & Customs (HMRC) policy on the VAT implications when house builders decide to temporarily let their dwellings before selling them. Key points to note are:

1. ��

   —�������� If you temporarily let a dwelling before selling it then you may affect the VAT you can recover on your costs.

2. ��

   —�������� Many house builders who temporarily let a dwelling will not be affected but you need to check this to avoid making VAT mistakes.

3. ��

   —�������� There is an easy way to check if you are affected by applying what we describe here as a “simple check for de minimis”.

4. ��

   —�������� If you fail the “simple check for de minimis” then you may have to:

5. ��
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