Please shed some light...
Mr A and B are going to buy a land and building together. Rent it out for storage of cars for about 5 years and ultimately sell the land and building off.
To get the benefit of Enterprise relief, they want to go as individual or partnership. (makes sense?)
How to go about completing the form VAT 1414A ?
Any other thoughts regarding the vehicle used ?
Thank you
Replies (2)
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My thoughts?
Why are they opting? What do they hope to get out of it, is it that they're being charged VAT on the purchase and want to recover it?
Basically until they come to sell it, from the info given, there's potentially no need to opt; they're either letting a building for the storage of goods (standard rated) or they're providing parking spaces (standard rated), as their business appears to be fully taxable they've got no need to opt until they consider making an exempt supply (the onward sale in 5 years). And being able to exempt the sale at that point may (depending on the market and potential purchasers) be more beneficial than the remaining 5 years of VAT that could be repayable through the Capital Goods Scheme, but there's not enough information to say whether the scheme even applies here.
Anyway HMRC traditionally don't accept that two 'individuals' can hold land together so they'll treat the venture as a partnership of some kind for the purposes of an option.