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Can developer claim vat back on legal fee newbuild

Legal fees vat reclaim

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Can a property developer building new build houses for domestic market claim the vat back on there legal fees when the purchase the land for development ? 

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By lionofludesch
09th Sep 2021 19:30

Hmmm - why do you think there's doubt ?

Is there something you've not mentioned ?

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By David Ex
09th Sep 2021 19:38


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Jason Croke
By Jason Croke
10th Sep 2021 10:50

If the intention is to build new homes and sell them, the sale of new homes is zero rated. Zero rate is a taxable supply (not an exempt or no VAT supply).

If making taxable (zero rated) supplies, the business is entitled to reclaim input tax associated with making those taxable supplies, such as acquisition of land, professional, building materials, labour, etc.

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Replying to Jason Croke:
By HMRC Escapee
13th Sep 2021 14:46

Just to add ...

New developments are generally progressed under their own 'fresh' VAT number.

The VAT registration needs to be in place early enough to ensure that such items including possibly planning fees do not fall foul of the 6 month timelimit for pre-registration input VAT on services received.

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