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Claim back vat on land with option to tax?

Claim as normal?

I am buying a piece of land which has vat on it as it has been opted to tax.

I am planning on building residential properties on it so will be vat registered. My accountant has said I can just claim back the vat on land as normal on vat return but a colleague has suggested it is not that easy and I would need to opt to tax the land in order to reclaim the vat? 

Can anyone support either approach?

many thanks 


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18th Aug 2017 18:59

Listen to your accountant.

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By jcace
19th Aug 2017 20:49

If you are planning to build and then sell the residential properties, you should do as your accountant has suggested. If you are planning to let any of the properties, you might not be able to reclaim all of the related input tax, but again, your accountant should be able to advise.

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