Real Estate Elections (REE)

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Real Estate Elections (REE)
  • What is a REE?
  • Options to tax made before a REE
  • Converting a single option into separate options to tax
  • Notifying HMRC of a REE
  • Providing up to date REE lists to HMRC
  • Global options to tax
  • Can a REE be revoked?
  • REEs and VAT group registrations

This guidance note will be of relevance to any business, or their advisers, who intend to acquire a large number of properties and want to opt to tax all of them, or a business that has made a 'global' option to tax in thepast.

VATA 1994, Sch 10 para 21(7); VAT Notice 742A 
What is a REE?

This is a formal decision made by a business that it is going to opt to tax all property transactions going forward.

If a business makes theREE, it will be treated as if it made an option to tax in relation to every property that it subsequently acquires an interest in. Each property that is acquired will be treated as if it has been separately opted to tax and theoption to tax will be effective from thedate of acquisition.

The business can revoke individual options to tax if it meets thenecessary requirements. Please see theRevoking an option to tax guidance note for more information.

Once thebusiness has made theREE to HMRC it is not required to notify HMRC when it acquires new land and property.

Please note that if a business wants to opt to tax a property that it currently does not have an interest in, it will be necessary for thebusiness to make a separate notification of theoption to tax under thenormal rules, as theREE cannot be used in these circumstances.

Please see theOverview of theoption to tax guidance note for more information.

When is an option to tax effective under a REE?

Once theREE is in place, any land and property acquired by thebusiness will be treated as opted to tax with effect from thedate thebusiness acquired it.

Please note that it is possible

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