What Land and Property issues could I have?
Land and property transactions may be subject to the zero-rate, reduced-rate or standard rate of VAT. Property sales and lettings could be at the zero or standard rate or be exempt from VAT.
The “option to tax” also needs to be considered as this will usually change VAT liabilities and VAT recovery rights in relation to commercial property transactions. Timing is everything and it is important that the option to tax is considered at the right time.
Unlike most items of expenditure, VAT on capital expenditure in relation to property may be subject to adjustments for up to 10 years under the Capital Goods Scheme. That means the use of the asset must be monitored for at least 10 years with potential clawbacks by HMRC if the use changes from that originally intended. If you have any questions regarding these rules then we can help you as this area is complex.
How we can help you with Land and Property issues.
Land and property transactions are always complex due to the fact that, depending on the circumstances, the supply can be exempt from VAT, zero-rated, Reduced Rated, or Standard Rated (not to mention Outside The Scope!).
We can provide advice to landlords, property developers, businesses in the construction sector, people carrying out self builds, and anyone else, on what the VAT treatment of a proposed transaction will be.
Due to the large figures usually involved in property transactions, specialist advice is always a good idea.
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Depending on budget, the review can focus on one area, such as overseas sales, or posting of expenses, or can look at the business as a whole.