A company has built a house on a caravan park it owns. VAT has been recovered on the basis that it will be used as part of the holiday lets. Company may decide to rent it out on a long term basis rather than for it to be used as holiday lets.
Would the VAT be clawed back as the intention has changed from a taxable to an exempt let? Is there a way to avoid a clawback?
Also, what if the house is used to accommodate the wardens rather than be let out?
Replies (2)
Please login or register to join the discussion.
Safest option
Would be to let as a holiday let, preferably for an entire season (try to avoid change of intention before it is actually brought into use).
Out of interest, was VAT charged on the construction of the property?