option to tax and vat registered trader
I have a sole trader registered for VAT at present in the construction industry. He has now bought a plot of land and intends to build a commerical building from which he will trade in a new business that is zero rated, the construction self employment will cease when staring to build this commercial property and the new zero rated business will start when completed.
My question is should he opt to tax the new commercial building so he can reclaim all the VAT on the building expenses, the total cost will by under the capital goods scheme or does he not have to do this as the new business wil be zero rated and he will stay VAT registered.
Your advice most welcome