Land and property development

As with any property development, VAT is a complex issue that needs to be dealt with correctly and efficiently.

Consider the VAT consequences of your proposed property transaction prior to completion to ensure that you do not suffer any unnecessary VAT loss. This is important given that the value of such deals is usually a significant amount for any business.

  • You could lose VAT if your purchase a building for more than £250k + VAT and change its use or sell it within 10 years.
  • You could end up paying VAT back if you purchase a building as part of a business and don’t ask the vendor about its previous use or VAT recovery.
  • If you make sales that do not attract VAT, you could suffer a VAT loss if you purchase or sell a property.
  • Planning - for example, consider use of the TOGC rules to achieve VAT cash flow and actual SDLT savings. Planning is key, and even if it just mitigates VAT timing it can assist deals

It is vital to get the issues right before transactions take place as it is difficult to rectify matters post-completion. We regularly provide technical updates and case studies relating to this complicated and important area of VAT regulation. Contact us if you would like help with any aspect of land and property issues.

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Video: Land and property

The VAT People can help you get the issues right before land & property transactions take place helping you plan, asses and save on VAT.