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Where Taxpayers and Advisers Meet

Property VAT on newly formed LTD

ltd101
Posts:47
Joined:Sat Feb 16, 2013 9:54 am
Property VAT on newly formed LTD

Postby ltd101 » Thu Nov 07, 2013 6:45 pm

I have recently set up a Property Investment LTD & have purchased two properties within the LTD to rent out. Unfortunately my revenues will be well below the c £79k '13 needed to mean I have to register for VAT but I am also aware that you can volunteer for VAT/register for VAT// join the 'FLAT RATE' VAT scheme.

I am aware that VAT is not actually chargeable on rental revenue but I was hoping (perhaps blue sky) that if i willingly registered for VAT I might be able to claim the below back:

VAT charged to the LTD by the estate agent for finding a tenant fees
VAT charged on replacement fridge
VAT charged replacement cooker
VAT charged on decorative work

Any thoughts/advice appreciated tks

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Property VAT on newly formed LTD

Postby pawncob » Fri Nov 08, 2013 12:26 pm

No.

Domestic property is outside the VAT system.
With a pinch of salt take what I say, but don't exceed your RDA

ltd101
Posts:47
Joined:Sat Feb 16, 2013 9:54 am

Re: Property VAT on newly formed LTD

Postby ltd101 » Sat Nov 09, 2013 10:14 pm

Tks vm.

What about if i build a dwelling to replace my garage (at the end of the garden)? It has separate access as its an end of terrace

What about if i convert the property into two flats? I read somewhere that this can mean the building works incur 0% VAT?

tks as always

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

Re: Property VAT on newly formed LTD

Postby section 44 » Mon Nov 11, 2013 1:06 pm

[quote="pawncob"]Domestic property is outside the VAT system.[/quote]

No it isn't. This is an over-simplification.

[quote="ltd101"]What about if i build a dwelling to replace my garage (at the end of the garden)? It has separate access as its an end of terrace[/quote]

Would the separate use and disposal of the new dwelling be permitted?

[quote="ltd101"]What about if i convert the property into two flats? I read somewhere that this can mean the building works incur 0% VAT? [/quote]

Conversion of a non-residential property into a dwelling qualifies for zero-rating. This wouldn't be in point.


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