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Where Taxpayers and Advisers Meet

TOGC

kurekoe
Posts:5
Joined:Fri Apr 08, 2016 1:29 pm
TOGC

Postby kurekoe » Mon Mar 20, 2017 2:41 pm

Hi
I was wondering whether anyone can help on TOGC?

Once a property is purchased as TOGC, how long do we have to carry on with the trade/business? If after a 2-3 years we decide to change the original intention of keeping the trade, are we liable to pay VAT that would have been originally chargeable or proportion of it? What if we decide to demolish the property and rebuild?

Thank you.
Eve

section 44
Posts:4467
Joined:Thu Oct 30, 2008 12:47 pm

Re: TOGC

Postby section 44 » Tue Mar 28, 2017 1:03 pm

are we liable to pay VAT that would have been originally chargeable or proportion of it?
No.

If the extent to which the property is used to make taxable supplies reduces and the property was a capital item for the purposes of the capital goods scheme for the previous owner with capital expenditure within the c. ten year adjustment period then you may be required to repay VAT that has been previously recovered.


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