Tax Tips: VAT and the sale of a commercial property
Starting this week AccountingWEB will offer a fortnightly tip on areas of indirect tax. This week Andrew Needham of VAT Solutions (UK) talks about how to avoid the VAT pitfalls involved in selling a commercial property.
It's a common scenario - a full taxable business purchases premises from which to conduct its business and is charged VAT on the purchase. The business claims back the VAT and five years later, after steady growth, decides to move to bigger premises.