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.
- 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.