Can a charity reclaim past input vat on lease of building?

Client is a recently registered charity. It was incorporated on 30/9/2007 but only became a charity in October 2012. HMRC has written to them saying that they would be recognised as a charity with effect from 30/9/2007.

The charity leases a building for its charitable activities and the landlord has been charging vat on the rentals. Had it been a charity since incorporation then it would have been exempt from Vat on rents.

Is there scope under the relevant rules to reclaim the vat paid on rentals, in light of HMRC's back dating the charity status to when the company was incorporated?

The Charity is not vat registered.


Thanks for advice

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Possible (partial) reclaim

BKD's picture