Commentary

V7.380 Option to tax—introduction

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.380 Option to tax—introduction

Part V7 Tax planning | Commentary

Property transactions—option to tax

V7.380 Option to tax—introduction

The VAT liability of a supply of goods or services is determined by relevant legislation – and will either be standard rated, zero-rated, subject to the reduced rate of VAT, exempt or, in some cases, outside the scope of VAT.

There is an extra dimension to consider where land and property transactions are concerned – namely that there is an opportunity for certain exempt supplies to become standard rated through exercising what is known as the 'option to tax'.

The option to tax is an option which is available to a person owning

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