Input VAT and mixed use buildings
I am involved with a building which is partly commercial and partly residential.
The landlord is VAT registered as part of his regular trading activity, nothing to do with property, in the commercial part of the premises. So the rental income from the residential part is presumably an exempt supply and the income from the regular trading is a normal supply. If the landlord undertakes extensive repairs to the building, but less than £250,000 in cost, presumably he can reclaim the input tax on the repair work subject to an apportionment based on HMRC rules.
I am fairly sure about this but some confirmation would be most welcome!
This is the first time I have posted a question on "Accounting Web"
All contributions gratefully received,