Option to Tax - Disapplying

[Newhere]

Hello all
Asking for a mate.
He bought a commercial property last year for 90,000 and did not pay the VAT 18k (TOGC) as advised by his accountant because the seller was charging VAT. He let the property and was charging VAT on rent.
He is VAT registered

He also has LTD company as used car dealer and VAT registered. Now he wants to move to this property.

Is is time to to dis-apply for VAT registration and pay back the VAT claimed because he is a connected party gov.uk/guidance/opting-to-tax-land-and-buildings-notice-742a#sec13.?

thanks

[les35]

If he deregisters the property rental business he will have to account for VAT under the deemed supply rule. Arithmetically this is probably the same as the what you are thinking.
But there will be a solution which does not involve repayment of the VAT; perhaps a Group registration if he is eligible.

[Newhere]

thanks les35 for your comment.

I will try to rephrase it again to clarify my question as it turns out he reclaimed the VAT later. and also more accurate information now.

Mark bought the commercial property [showroom] for £90,000+VAT for £118,000 and claimed back the 18k by opt to tax the property.
Both he himself and the ltd co are VAT registered.
He is intends to let this property to his ltd company and charge rent £1000+vat and submit two vat returns every quarter, his personal and ltd co..

There are no groups etc involved.

I did some research and I thought as he is the connected party to his Ltd co and per anti-avoidance measure he should not have reclaimed the VAT.
gov.uk/guidance/opting-to-tax-land-and-buildings-notice-742a#sec13

It has been over 9 months now. What is his position now?
thanks

[les35]

The anti-avoidance legislation you refer to only applies if the tenant is partially exempt, which is not common for a motor dealer.
From your updated post there is no VAT charge, and no need to go down the Group registration route.
But I am reluctant to be more specific without sight of documents (VAT and property etc being very tricky!).