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Where Taxpayers and Advisers Meet

Vat on Purchase of Land

Vincent and Barn
Posts:2
Joined:Sun Feb 26, 2017 2:44 pm
Vat on Purchase of Land

Postby Vincent and Barn » Sun Feb 26, 2017 2:53 pm

Hello, this is my query.
my Company has purchased a piece of land which the seller opted to tax and we in turn paid the VAT.
We have then made a claim for a refund of the VAT.
The land was purchased with the intention of building a office and small warehouse for our business and provide 2 of the directors (me and my partner) accommodation above.
Planning hasn't been approved yet.
The land cost was £150k + vat
Is it correct that I should be able to claim the vat?

When we come to develop the land can the business claim all the VAT on the build costs?

Any comments or experience would be appreciated.

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

Re: Vat on Purchase of Land

Postby les35 » Mon Feb 27, 2017 10:13 am

Assuming that the business is fully taxable, then some VAT at least can be claimed.
Where you are constructing a new dwelling, then you should seek disapplication of the Option to Tax.
Re: input tax; you can claim input tax in relation to the commercial development. For the dwellings, there is some 'blocked input tax' in Notice 708, chapter 13.

Seems like more detailed paid-for advice is necessary.

Vincent and Barn
Posts:2
Joined:Sun Feb 26, 2017 2:44 pm

Re: Vat on Purchase of Land

Postby Vincent and Barn » Tue Feb 28, 2017 7:17 am

Thanks, any recommendations for a tax specialist in this area?

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

Re: Vat on Purchase of Land

Postby les35 » Tue Feb 28, 2017 10:23 am

I am happy to have a look at it.
Or, are you looking for someone near where you are based?


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