This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

VAT Ltd property purchase

New7987
Posts:2
Joined:Wed Jan 15, 2020 2:18 am
VAT Ltd property purchase

Postby New7987 » Wed Jan 15, 2020 2:36 am

Hi all wondering if anyone can help

Have a VAT registered ltd company that works in construction (subcontracting work doing property repairs and improvements etc). Now looking at branching out and have a side project. The plan is (alongside subcontracting) to purchase a resedential property (no mortgage required as cash buyer) with the ltd companies reserves, improve the property and then either sell immediately or rent out for a number of years before selling.

Does anyone have experience of this? Does anyone know the tax/vat treatment?

Best regards

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: VAT Ltd property purchase

Postby AdamS93 » Wed Jan 15, 2020 2:55 pm

Yes.

The rent you charge your tenants will be exempt from VAT and as a result, any of the VAT incurred on the improvements to the property will not be recoverable. The company will also be a partially exempt trader. You might benefit from some de-minimis rules.

Probably best advised to get some paid for, tailored advice.

New7987
Posts:2
Joined:Wed Jan 15, 2020 2:18 am

Re: VAT Ltd property purchase

Postby New7987 » Wed Jan 15, 2020 5:55 pm

Hi all wondering if anyone can help

Have a VAT registered ltd company that works in construction (subcontracting work doing property repairs and improvements etc). Now looking at branching out and have a side project. The plan is (alongside subcontracting) to purchase a residential property (no mortgage required as cash buyer) with the ltd companies reserves, improve the property and then either sell immediately or rent out for a number of years before selling.

Does anyone have experience of this? Does anyone know the tax/vat treatment?

Best regards


Return to “VAT & Excise Duties”