Purchase of commercial property
I am not feeling at my brightest today, having had some surgery yesterday, so I would be grateful if my fellow members could save me the mental effort of looking it up for myself.
VAT-unregistered new client company is buying commercial property (I believe a head lease, rather than the freehold) from a vendor who wants to charge VAT, so I assume that the vendor must have registered for VAT and opted to tax. I am therefore now registering my client for VAT.
- I am also applying for my client to opt to tax (isn't it good that you can do this all online now?), but is it necessary to opt to tax in order to reclaim any VAT charged on the sale of the property? I think it probably is because otherwise the property would be being acquired for the purpose of making exempt supplies of rent.
- The solicitor acting for my client is saying that registering for VAT (and perhaps, also opting to tax) are pre-requisites for the sale being treated as a TOGC, with which I am inclined to agree. Am I right that a sale of a let commercial property satisfies the rules for a TOGC?
- The solicitor is asking if we can serve on the vendor a notice under Article 5.2B of the VAT (Special Provisions) Order 1995 to say that it does not apply to my client. If it is a TOGC, why would we have to serve such a notice?
- Not really my concern, but the solicitor says that if VAT is charged (and reclaimed by my new client), SDLT would be payable on the price plus VAT. Is he right?
Thank you for any answers.
- Sick pay 111 2
- home office expenses as a director 112 4
- 2 sole traders merging to become a limited company what do they need? 243 7
- Undeclared rental income 249 5
- Home Use Costs in Company Accounts ? 205 4
- Drop box Storage 864 9
- Drop Down Boxes 152 2
- Unfurnished Lettings Expenditure 203 5
- Any Scottish members out there? 13,363 498
- CIS paid under reg 9 207 1
- PAYE Refunds from HMRC 180 4
- rti 239 9
- Cash injection by shareholder 721 9
- Another goodwill question ....... 239 2
- FIFA game and making money 1,755 15
- Subsistence expenses for one man band contractor companies 403 7
- What Exactly does the RTI Penalty Relaxation mean? 266 4
- How to prove to HMRC that you was not self employed? 804 21
- Property management company Online returns 102 1
- VAT on sale of Assets to Director 139 3
- Raiders of the Lost Tax File 1,402
- Chartered Accountant in County Down N.Ireland 535
- National Insurance 436
- Non Resident 328
- Hands on experience of Digita 256
- Best way to take money from a business if you have unlimited EIS allowances? 240
- Employer's Helpline 194
- Does anyone use PS Financials accounting software out there? 163
- Commercial rental property - still Schedule A? 159
- Umbrella pay services 133