Option to tax
I have a client who purchased business premises 11 years ago and had to pay VAT thereon, which of course he reclaimed.
About 4 years ago he incorporated but the premises remained in his own name. He transferred his VAT reg. to the new company as a going concern and nobody, myself included, gave a thought to the property VAT reclaimed.
Now he's wondering what will happen should he retire and sell the business. He cannot charge VAT himself as he's not registered and presumably nor should the company 'cos it doesn't belong to them. If VAT has to be charged then presumably the buyer will simply reclaim it.
Maybe the VAT should have been repaid when he deregistered ? Bit late for that now, but otherwise would the company just charge VAT on the sale ? I seem to recall that there's something saying that 'option to tax' VAT does not have to be repaid when somebody deregisters after 15 years; this may have a bearing.
Any thoughts would be welcome !
- How quickly do you turn around y/e accounts? 2,131 16
- Sage 200 and Access Dimensions reviews 291 1
- VAT Option to tax 462 17
- Brain freeze - loss on disposal of company car 157 6
- Capital allowance vehicle exchange 189 7
- S162 and Capital Allowances 125 2
- Director leaving in month 1 129 2
- Ex Gratia payments 72 1
- HMRC chasing club for unpaid fees 263 3
- Unaudited accounts and an accountant’s certificate of confirmation 154 4
- Selling assets to yourself ? 186 3
- 24 Month Rule - New Employer 181 3
- Director's remuneration accrual 171 4
- IHT - clawback of BPR 46 1
- EIS - connection through employment 93 2
- HMRC Dispensation - How long does it last for? 243 3
- Electronically supplied services - B2B 56 1
- CIS and Close Company 96 2
- Correct tax & VAT treatment of local overnight expenses 227 4
- Secondment expenses 155 3
- Residential Property Purchase Above £750K 909
- Using Sage with Sofa Categories 640
- Free Tax Legislation? 404
- Director Loan account operation 396
- Understanding the implications of January 2015 VAT changes for downloads on threshold for VAT registration 335
- transferring simply accounting 2010 from xp to windows 7 318
- rent-a-room allowance for part of the year 224
- Paye procedures for CVA 219
- HMRC Second Income Campaign - not so much a question as heads up 184
- Pension Fixed Protection 161