Good morning all.
The situation is that a husband and wife own a derelict commercial building.
They intend to vat register, opt to tax and refurbish the property as a commercial building.
The building will be let to a limited company who will be operating their trade consisting of both vatable supplies and vatable services.
The company is owned 100% by the husband and wife, but will not initially be vat registered. Although long term it probably will.
It is my understanding that because the company is making vatable supplies the option to tax will not be disapplied.
There are significant non tax reasons for the tenant trade being operated by a company. It would be prudent from an insurance perspective.
My main concern is the amount of rent to be charged by the husband and wife to the company. I accept that it must be more than a nominal amount but does it have to be market value?
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