If Land and Property projects are managed carefully, the potential for VAT savings is enormous.
Planning a new building project or entering into a commercial property purchase is a particularly complicated process even before you take into consideration the cost and VAT implications where many issues can arise.
- Does the property carry an option to tax?
- Can the property be transferred as a going concern removing the VAT charge?
- Do you need to consider its inclusion as a Capital Goods Scheme Item?
- Can the alteration works to a listed property still benefit from zero-rating following the changes announced in the 2012 Budget?
- Will the renovation or conversion of your property be eligible for the reduced rate of 5%?
- Will the property benefit from zero-rating as a Relevant Charitable or Relevant Residential Property?
- Can the property be sold as a taxable supply, allowing recovery of VAT on costs or will it be VAT exempt with no recovery?
When it comes to Land and Property VAT, there typically isn’t a one-rule-fits-all solution – our specialists can help you reduce VAT as a cost to your project. We have significant experience in this area built up over a number of years and it continues to be one area where clients regularly turn to us knowing they will receive specialist and practical advice.