A client has purchased a commercial property that had been opted to tax. They have reclaimed the VAT and I will need to do a belated notification. However, they are thinking of converting the building to residential properties.
I know that if they had mentioned this prior to purchase they could have signed a VAT1614D certificate and not been charged VAT. Can anyone confirm the position if they reclaim the VAT as a commercial property and then convert? The flipside is that they could still use the property for commercial purposes (ie, a cafe) if they do not get planning consent!