Our subscriber is in the process of leasing a property to a tenant who will use the ground floor for her retail business and the upper floor as living accommodation. Could opting to tax the property
save her VAT?
Published 07.09.2021
Opting to tax a property began in the 1980s following an EU ruling to override UK VAT rules. The main effect is that you must usually charge VAT when you make supplies of the property, e.g. charge
rent, but why should you bother opting?
Published 17.05.2024
Our subscriber recently moved to larger premises with enough room to let part to another business. HMRC’s helpline warned that this might result in a reduced entitlement to reclaim VAT. Why, and how
can this trap be avoided?
Published 02.04.2020
Our subscriber owns an unoccupied commercial property. She plans to convert it into two flats on the upper floors and a retail unit on the ground floor, which she’ll let. How much of the VAT paid on
the conversion costs can she reclaim?
Published 26.05.2023
As a landlord, making an option to tax a property can reduce your costs by allowing you to reclaim VAT on your expenses. But an option can work against you, e.g. by limiting the market when you sell.
In what circumstances can you revoke an option?
Published 12.06.2023
As a landlord you’ve probably heard about the VAT option to tax. While it can work to your advantage it has long-term consequences. How long does an option usually last and is there a way to end it
sooner?
Published 22.09.2015
You need to extend your business premises. The trouble is that while the landlord has granted permission you’ll actually pay for the work. As your business will benefit you’re okay with this, but can
you recover the VAT on the cost?
Published 20.02.2017
Deciding whether or not to opt to tax a property is often far from straightforward. However, if you reclaimed the VAT you paid for its purchase or construction it might be a no-brainer. Why?
Published 01.11.2017
Our subscriber is buying the freehold in a property, part of which he wants to convert to residential use. The other part is let to a charity with some years left to run on the lease. The seller
wants to add VAT to the wholesale price. Is he right to do so?
Published 27.09.2021
You have a chance to make money from buying a commercial building and then selling it to a developer for a profit. The trouble is the property is subject to VAT, which will wipe out your profit. Is
there a legitimate way to avoid it?
Published 26.06.2017