Commentary

V7.441 Input tax—repairs and renovations to farmhouses

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.441 Input tax—repairs and renovations to farmhouses

Part V7 Tax planning | Commentary

V7.441 Input tax—repairs and renovations to farmhouses

Although this tends to be a controversial topic as far as input tax recovery is concerned, clear guidelines have been agreed between HMRC and the National Farmers Union – and often the problem occurs because farmers tend to see expenditure as being more relevant to business than is really the case. The key rules are as follows:

  1.  

    •     for a normal working farm, 70% of VAT can be reclaimed as input tax on repair and maintenance costs to the farmhouse, eg roof repair, as long as the VAT registered person in occupation is

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