Input VAT on construction of offices

Input VAT on construction of offices

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Quick question...

Where a VAT registered company were to build (or at least engage various contractors to construct on their behalf) new offices from which to carry on their trade (all outputs being standard rated) would the input tax charged by the contractors be recoverable?

I suspect there are various 'ifs' and ''buts' - a 'general' answer would be much appreciated.

Thanks in advance,

Ryan

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chips_at_mattersey
By Les Howard
07th Nov 2014 08:27

Office construction

Where the outputs of the company are fully taxable, input tax can be claimed in full on the construction work.

But, if the total cost, including professional fees, exceeds £250,000, AND, if there is a subsequent change of use (exempt let or sale), then a Capital Goods Scheme adjustment will be required. This can be planned for (Option to Tax), but will need further advice at the time.

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