Is vat payable

[mwood37876]

Hi all! Need some advise?
I am in the process of buying a property from the NHS which was a former health centre and is currently registered for commercial use.
The seller is VAT registered but has not elected to waive the exemption to charge vat.
it will not be a transfer of a business as a going concern.
I am buying the property as an individual and not through a company.
My understanding of this is that I will not have to pay any vat, but i need to be sure before i exchange contracts.
Could somebody please clarify this for me.
Many thanks

[Eamon McNicholas]

You need to ask the seller in writing, more than once, if property has been opted for VAT (often vendors have no idea) and get their clear written answers supported by evidence, eg get them to get a letter from HMRC confirming no option.

Also need to have the contract guard against them opting between exchange and completion.

If despite this the property was opted after all they might try to send you an additional bill.

So helpful to have the written contract price cover this too, eg price is £X inclusive of opted VAT IF applicable.

So if price agreed is say £100 that is what you pay. Either £100 and no VAT or £85.10p + VAT 14.90p = £100.

Eamon Mc Nicholas
Tax Barrister

www.EamonMcNicholas.com

[The above is not to be taken nor used as specific advice]