Client is selling freehold commercial property which has so far occupied himself to trade from (sole trader). The client is not vat registered. His buyer will either occupy the busilding for his own business or let it out. Is the sale of the freehold vat-exempt?Thanks
jimmy
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Purchaser beware!
Hi Jimmy
It may not be your problem, but I seem to remember that the purchaser, if he wants to opt to tax his newly-acquired building, has to make the option BEFORE he actually gets the freehold. I'm not up to speed with this as we haven't done any buildings lately, but it's worth (him or her) checking this out before the deal goes ahead.
I do know that the area of building options is a veritable minefield!
Sounds exempt
Provided your client has not made any option to tax this property in the past (and it is assumed he has not as he is not VAT registered) then the sale of the property should be exempt.