Commentary

V7.383 Benefits of opting to tax land or property

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.383 Benefits of opting to tax land or property

Part V7 Tax planning | Commentary

V7.383 Benefits of opting to tax land or property

As explained at V7.380, the main benefit of opting to tax land or property is that input tax that is attributable to an exempt supply (and not reclaimable) will, as result of the option, become attributable to a taxable supply and therefore reclaimable subject to the normal rules. This is an important point – any taxpayer making an option to tax election should have an input tax motive for doing so. If a business can claim input tax on property expenses without opting to tax (eg because it is using the building for its own taxable business activities) then it should not make an election. Don't forget that an

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