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Where Taxpayers and Advisers Meet

Limited Co Vat Registration

Arthur
Posts:8
Joined:Wed Aug 06, 2008 3:08 pm

Postby Arthur » Tue Mar 16, 2004 9:23 am

Have a limited company which buys older flats, gives them a face lift then we sell them on. We have to pay VAT to builders and for materials etc. however have been advised that we are not eligible to register for VAT which means that we cannot reclaim any that we pay either.
Does anyone have any advice on this.

hq@vatease.co.uk
Posts:13
Joined:Wed Aug 06, 2008 2:18 pm

Postby hq@vatease.co.uk » Tue Mar 16, 2004 9:35 am

Hello Arthur,
Your advice is correct - this is because the sale of "second hand" flats are exempt from VAT which means in practical terms you cannot become VAT registered and therefore cannot recover the VAT incurred in giving your flats a face lift.
If, for example, you had a mixture of new and second hand flats in your company then you would only be partially exempt which means that you could become vat registered and possibly get some VAT back.
Look out for the reliefs available if you ever get involved with listed buildings or property where you are changing the number of dwellings.
Best of luck.
Kind regards
Simone Hurst-Franks
Principal
VATease


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