The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The purpose of this guidance note is to outline the main principles that have an impact on a situation in which a business is required to obtain permission to opt to tax land and buildings.
A business cannot simply notify HMRC that it intends to opt to tax a property if it has made exempt supplies, or intends to make exempt supplies, of the land and buildings in the ten years prior to opting to tax the land and buildings. Unless the business meets the conditions under which HMRC can grant automatic permission to opt to tax land and buildings, it will be necessary for the business to obtain permission to opt to tax.
If a business meets one of the four conditions outlined below it can obtain automatic permission to opt to tax from HMRC.
The business has a mixed use development, and the only exempt supplies that have been made relate to dwellings located on the development.
Condition 1 is easy to interpret and will be satisfied where previous exempt supplies of the property in a mixed development have been in relation to dwellings only.
The business has decided that it does not wish to recover VAT incurred on costs associated with the property before it has opted to tax.
The business must also meet the following additional conditions:
the only exempt income received in respect of the property relates to rent and service charges, and the business has not received any premiums or other advance payments that will relate to any periods after the option to tax is in place. Regular rent and service charges are ignored when determining whether this condition is satisfied. The payments will be treated as regular if they are charged at least every 12 months and the amount charged is at arm’s length or commercial, and
the business must only intend to recover VAT on general overheads relating to
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Why is this important?In order to get a full basic state pension, an individual must have paid sufficient national insurance contributions (NIC) for a minimum number of qualifying years in their working life. As NIC cannot be paid in the tax year before the individual reaches the age of 16, or in a
IntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeUK withholding tax may be reduced under the provisions of a double tax treaty (DTT). Prior to 1 June 2021, payments of interest and royalties made to EU resident associated companies were also exempt from
The reform of corporate losses within Finance (No 2) Act 2017 included a mixture of relaxations to the use of losses within the previous regime which applied before 1 April 2017 and also a major restriction (50% for most companies) on the amount of profits after 1 April 2017 that can be covered by
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s