The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note covers situations in which a business is not entitled to opt to tax.
Note that HMRC has made some temporary changes to notifying an option to tax during the COVID-19 (coronavirus) outbreak (notably extending the deadline for notification from 30 to 90 days). These changes aren’t covered in this guidance note; but for details, see the Coronavirus (COVID-19) and VAT - further VAT consequences guidance note.
The table below provides an overview of the types of property transaction where the business is not entitled to opt to tax. If it does opt to tax, the supply will remain exempt from VAT because the option to tax will not be valid.
It should also be noted that HMRC have also introduced some anti-avoidance provisions which ‘disapply’ the option to tax in certain situations. Further informationon the disapplication of the option to tax under the anti-avoidance provisions can be found in the Disapplication of the option to tax ― anti avoidance provisions guidance note.
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