The VAT People logo
0161 477 6600

Purchasing Opted Commercial Building Case Study

Purchasing Opted Commercial Building Case Study

VAT

A business consulted us when purchasing an “opted” commercial building to convert it into several self-contained apartments.

We assisted them in disapplying the seller's “option to tax”, which saved the business from paying VAT when paying the purchase price, benefitting their cashflow. Furthermore, as SDLT is calculated on the gross selling price of the building, this reduced the SDLT cost of the building’s purchase.

We were also able to advise on the relevant works to the building that qualified for the reduced rate of VAT (5%) and how the business could recover the VAT incurred when it sold the newly created apartments. Therefore, the VAT incurred was not an additional cost to the project.

Related posts

Apr 29, 2026

Can a UK Business Reclaim EU VAT?

The VAT People provide specialist, practical advice to support UK businesses in recovering VAT incurred outside the UK and managing the associated compliance requirements. With extensive experience across EU jurisdictions and a detailed understanding of HMRC and overseas authority expectations, the focus is on delivering accurate, defensible outcomes.
Apr 27, 2026

Challenging HMRC’s VAT Treatment for Fly by Nite Rehearsal Studios

Fly by Nite Rehearsal Studios provides fully equipped rehearsal facilities for touring productions, alongside integrated services including rigging, crew, equipment hire and security. HMRC challenged the VAT treatment applied by the business, arguing that its supplies should be treated as exempt from VAT. Find out how The VAT People supported the business in challenging this position and achieving a commercially appropriate outcome.
Apr 20, 2026

VAT on Donated Goods to Charities April 2026 Changes Explained

HM Revenue & Customs (HMRC) revised its guidance on the VAT treatment of goods donated by VAT-registered businesses to charities, specifically where those goods are intended for onward donation or use in a charity’s non-business activities. These changes took effect from 1 April 2026 and provide a clearer, more structured framework for determining when a VAT charge does not arise on such donations. Read more here