Last week we started a series of tax chats looking at the tax considerations for those buying commercial property. This week we turn to VAT.
It is very important to think about VAT early on.
One of the first and critical questions to ask is whether an option to tax has been made by the vendor. This can determine whether VAT will be charged on the sale, and also whether the purchasing vehicle needs to register for VAT.
Remember also that if VAT is charged this will increase the liability to SDLT, which is always paid on the VAT inclusive price.
Not only is it important to ask if an option to tax has been made, a copy should always be requested. If a copy needs to be obtained from HMRC this needs to be done asap, failure to do so can add considerable delay to the transaction.
For more information, please contact Lesley Sutton on 01484 550037 or email firstname.lastname@example.org.