Input Tax and disapplied option to tax

[Aldur]

Client has a building with an option to tax on it, which he has recently sold for redevelopment into flats.

How is the input tax on the legal costs and agent sale fees treated? Are they recoverable or exempt?

The building has not been let taxably for about three years, but previously to that taxable rent has been paid.

Rgs

NeilW

[Generix]

Input VAT follows supply, if output VAT was charged then input VAT fully recoverable, if sale was exempt input VAT blocked and may need PE method.