The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the option to tax or election to waive exemption in relation to supply of certain land and property. It should be read in conjunction with the following guidance notes:
If the land and property transaction will be exempt from VAT under VATA 1994, Sch 10, Group 1, the supplier may not be able to recover any VAT incurred on any costs associated with the property. However, providing certain conditions are satisfied, it is possible for suppliers to 'opt to tax' supplies of land and property. This means that VAT will be charged on all property transactions that would normally be exempt from VAT. This can be beneficial for the supplier as it will enable them to recover all of the VAT incurred in respect of the property.
The ability to recover any VAT charged can be especially important when the supplier has incurred, or will incur, significant amounts of VAT on:
However, a supplier should consider the VAT status of the lessee / purchaser who is likely to lease / purchase the property before
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