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Commercial Properties owned by Partnership

Commercial Properties not opted to tax. Should the partnership register for vat?

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Dear colleagues. I would be most grateful if you could clarify this for me. My client has jsut formed a partnership as an investment partnership to take over the commercial properties owned individually by the now partners. The properties are not opted to tax. Am I righr in saying that there is no need to register for vat since no other activity will be carried out by the Partnership? It will only rent out the commercial properties. I would be most grateful.

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By Ruddles
02nd Jun 2017 16:17

Correct. Whether it is the most sensible thing to do is another matter.

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By MGD
02nd Jun 2017 16:25

Thank you so much for the prompt response. Whether it is a sensible thing to do, we advise clients but ultimately it is their decision.

Thanks again and have a nice weekend

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paddle steamer
By DJKL
02nd Jun 2017 17:21

Works for us not registering/opting, but we bought most of our properties back in the days when vat on property really never featured, we spend very little on the properties and have a substantial list of charities as tenants, so not being registered is fine. Apart from one partnership commercial property all were purchased in 1990 or earlier.

Our Limited company ones are even more dated, a fair few were bought in the 1960s!!

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By Adam12345
02nd Jun 2017 17:54

I'm no VAT expert, but surely the partnership is only making exempt supplies as there is no option to tax, so cannot register for VAT even if they wanted to?

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Replying to Adam12345:
By Ruddles
02nd Jun 2017 19:32

Absolutely correct.

But the question was "do we need to register for VAT?" The very simple answer is "no".

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