Opting to tax land and buildings
This notice cancels and replaces Notice 742A (March 2017).
To help businesses during coronavirus (COVID-19) we have made temporary changes to the time limit and how you notify an option to tax.
This guidance will be updated when this change ends.
The following areas of this notice have the force of law under Sch 10 of VATA 1994:
The text within sections in paragraphs 2.7.5, 3.4.2, 3.6.2, 5.6, 6.3.6, 6.3.8, 8.1.4, 8.1.6, 8.3.4, 8.3.7 and 14.9, which explains how to make a notification or application and what information it should contain.
The text within sections A–L in paragraphs 2.7.2, 3.4.3, 3.6.3, 5.2, 6.3.5, 8.1.2, 8.3.3, 13.8.6, 13.9.1, 14.8.3 and 14.9 and 14.12.
1.1 What this is notice about
This notice explains the effect of an option to tax and will help you to decide whether to exercise that option. It will tell you whether you need permission from HMRC before you can opt to tax, and how to notify HMRC of your decision. Prior to 1 June 2008, the option to tax was also referred to as the election to waive exemption. From 1 June 2008, it is only referred to as the option to tax.
HMRC recommends that you also read Notice 742 'Land and property' which gives basic information relating to supplies of land.
This notice assumes that you have a working knowledge of basic VAT principles, as outlined in Notice 700 'The VAT Guide'.
Main narrative treatment—V4.114–V4.116.
1.2 The effect an option to tax has
Supplies of land and buildings, such