vat implications on pub purchase for residential use

[simba]

i am buying a pub and want to live in it as a house. I therefore do not want to pay vat on the purchase. I may want to reopen it at a future date as a bistro, trading under the vat threshhold. I believe i would have to live in it for a certain length of time to prevent the vat being still applicable?

[section 44]

I may want to reopen it at a future date as a bistro

It doesn't sound like you have the intention of using it as a dwelling (presumably, in any event, the building as a whole cannot be used as a dwelling?)

[les35]

Quite apart from any planning applications and change of use approval, the VAT position has to be approached carefully.
If the Vendor has 'opted to tax' the sale of the pub, then you are entitled to have the option disapplied, either in full or in part. A form VAT 1614D is required to be completed and given to the Vendor at an early stage. If the price has been agreed, the Vendor has no obligation to accept the document.
Beware, some Vendor's refuse to accept a VAT 1614D, and will not proceed with the contract.

[section 44]

Beware, some Vendor's refuse to accept a VAT 1614D, and will not proceed with the contract.

Perhaps because of perceived abuse with purchasers incorrectly issuing certificates to disapply the VAT election and the vendor's potential exposure with regards to not accounting for VAT.

[Generix]

i am buying a pub and want to live in it as a house. I therefore do not want to pay vat on the purchase. I may want to reopen it at a future date as a bistro, trading under the vat threshhold. I believe i would have to live in it for a certain length of time to prevent the vat being still applicable?

If it is currently trading as a pub and you continued the trade (at least for a little while) then you could escape the VAT by means of a TOGC (transfer of a going concern)

[les35]

but be careful - if you opt to tax (to ensure that the purchase is a TOGC), and then later deregister, there is a 'deemed supply' at the time of deregistration. This means that VAT is payable on the value of the asset at that time. This may not apply, but you should tread very carefully.
Various rules apply to (a) option to tax, (b) TOGC, (c) deregistration; this is not a straight-forward issue. You will need to take advice as soon as possible.