Commentary

V7.381 Implications of opting to tax a property

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.381 Implications of opting to tax a property

Part V7 Tax planning | Commentary

V7.381 Implications of opting to tax a property

As explained above, the decision to tax a property has major consequences, and is one that should not be taken lightly. The amounts of tax involved in land and property transactions are considerable and a hasty decision to tax a property could potentially create an extra VAT cost to tenants or prospective buyers of the property who cannot reclaim input tax.

Equally, the decision to opt to tax the property could exclude a large number of potential buyers or tenants (eg businesses with exempt income such as insurance brokers) from taking any interest

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