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Partnership and property

A partnership acquires a property (Dec 08).

Two years later, the partnership incorporates.  The property is retained by the partners, who charge the limited company a rent.  The VAT number is transferred to the limited company.

Two years later, the business is wound up, and the property is now being sold.

It has come to light that there was an option to tax on the property, and input VAT was claimed when it was purchased.

Current situation:

- no VAT has been charged on the rents

- the legal owners of the property are not VAT registered

What options are there to unravel this?

Thank you for any help.

Replies

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04th Dec 2012 19:18

Note that the Accountant may be at risk of a negligence claim

I have heard of such situations before but the test for negligence is one of reasonable competence. And a reasonably competent accountant would have been aware of the issues.

Hopefully though, in this case, there was no accountant involved at the time.

Sorry, I can't help re the unravelling/resolution.

Mark 

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