Hi all
im wondering about the VAT on developing residential and commercial properties that have been empty for 7 years. I'll be doing most of the work myself and will only pay a painter to come in
can anyone advise on if i can become VAT registered for this and reclaim the VAT on my purchases? is it restricted to the commercial building or can i reclaim for both as they have been empty more than 2 years?
i will get an accountant eventually but its just for some advice in the meantime so i can get my head around what will be needed and whats to be considered
Thanks in advance
Replies (5)
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It depends! Will you occupy any part, or sell, or let? Depending on the answers you might Opt to Tax, and register for VAT, but don't do that without careful thought.
If you become VAT registered and opt to tax the commercial property you will ber able to recover the VAT incurred on costs directly attributable to that project. The VAT on the residential will be irrecoverable (small proviso ask your accountant about De Minimis rules for Partial Exemption).
Best answer take advice, as you will need the costings to consider the best VAT solution.
The two year rule is for the reduced rate of repairs etc being undertaken by a VAT registered supplier. In your case you are doing it yourself so it doesnt apply.