- I am looking at buying a freehold pub for the purpose of converting to Residential flats. I could poss show a pre-application notice of this intention
- it is being sold by a brewery
- currently closed, boarded up for last 6mths...so not a going concern
- price + VAT will be charged eg. £250k + VAT of £50k
- currently the pub has many rooms upstairs (incl some en suite) that had been let out on a per night basis (so not currently residential nor self contained)
- I am a private individual not VAT registered...finance will be mix of cash/commercial loans
Q1. how to avoid the VAT in the first place - getting them to sign and agree a 1614D before price agreement ?
Q2. should the VAT be reduced to 90% at least - or would the fact the upstairs rooms were let out nightly declassify them from being residential ?
Q3 why would the brewery opt to tax in the first place...what would incentivise them to to sign 1614D above...would they lose out somehow on claiming back VAT on their expenses, if so what sort of expenses...(this to gauge is it worthwhile paying a premium to avoid the VAT) ?
Q4. would qualifying conversion costs be VAT reduced i.e 5% instead of 20%...would these costs apply to the whole building ?
thank you very much in anticipation of any answers/thoughts