This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Vat payable on residential part of public house

pubprobs
Posts:2
Joined:Mon Oct 17, 2016 11:59 am
Vat payable on residential part of public house

Postby pubprobs » Mon Oct 17, 2016 12:13 pm

I bought a public house in a limited co. to claim the vat back.I claimed £36,000 on a £200,000 purchase price 90% of the cost,if I lease the first floor residential to another of my companies, am I right in thinking a valuation of £20,000 10% of the purchase price should be ok for the lease payment from one company to the other without raising any liabilities,

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: Vat payable on residential part of public house

Postby les35 » Mon Oct 17, 2016 2:10 pm

No.
The issue is quite complex. Input tax recovery depends on the use to which you put the taxable portion of the property; will you occupy, or convert, sell or let?
A full and accurate response does depend on sight of the relevant paperwork.

pubprobs
Posts:2
Joined:Mon Oct 17, 2016 11:59 am

Re: Vat payable on residential part of public house

Postby pubprobs » Wed Oct 19, 2016 1:31 pm

No.
The issue is quite complex. Input tax recovery depends on the use to which you put the taxable portion of the property; will you occupy, or convert, sell or let?
A full and accurate response does depend on sight of the relevant paperwork.

Thanks for your input,the property on the ground floor is trading as a public house, the first floor is residential a 3 bed self contained flat, my long game is to lease off the flat on a 999 year lease then sell the freehold, the figure of £20,000 for the leasehold interest was the 10% not vatable on the original purchase price.


Return to “VAT & Excise Duties”