The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
The purpose of this guidance note is to outline the main principles that have an impact on a situation in which a business is required to obtain permission to opt to tax land and buildings.
A business cannot simply notify HMRC that it intends to opt to tax a property if it has made exempt supplies, or intends to make exempt supplies, of the land and buildings in the ten years prior to opting to tax the land and buildings. Unless the business meets the conditions under which HMRC can grant automatic permission to opt to tax land and buildings, it will be necessary for the business to obtain permission to opt to tax.
If a business meets one of the four conditions outlined below it can obtain automatic permission to opt to tax from HMRC.
The business has a mixed use development, and the only exempt supplies that have been made relate to dwellings located on the development.
Condition 1 is easy to interpret and will be satisfied where previous exempt supplies of the property in a mixed development have been in relation to dwellings only.
The business has decided that it does not wish to recover VAT incurred on costs associated with the property before it has opted to tax.
The business must also meet the following additional conditions:
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