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 an 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.
It is vital to get the issues right before transaction take place and 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.
