We are currently in negotiations to sell our commercial properties that we run our trading business from. Both properties are greater than 3 years old and so the sale of the properties should be exempt for VAT. We purchased the properties less than 10 years ago and we reclaimed the input VAT that was charged to us on the purchase price of the properties. We have also claimed input VAT on significant property improvements over the last 10 years. Am I correct in thinking that if we sell the properties then we will need to repay a proportion of the Input VAT claimed on the properties under the Capital Goods Scheme? Also is it correct that if we Opt to tax the properties prior to sale, then the properties would be standard rated for VAT, but this avoids us having to repay any input VAT - but causes more stamp duty to be paid by the prospective buyer. Does it make any difference to the above situation if we sell the properties but then continue to run our business from them by paying rent to the purchaser?