Opting to tax new resi and Commercial conversion

Do I need to opt to tax and can I recover all VAT

Didn't find your answer?

So there are three developments.

One is a building of a new Residential development, Two is a conversion of a commercial Into residential and Commercial, and three is a conversion to purely residential. I think I understand the position re One and Two but wanted to check.

My understanding is the sale of a new residential property is zero rated. Does this mean I dont need to do anything and I am automatically am able to reclaim VAT on labour and Building materials.

For option two, the Resi element will be zero rates, but the commercial would be excepted. Accordingly I need to opt to tax the land so that i can recover the VAT on the Commercial, making the supply standard rated.

For option three, do I need to opt to tax as it is a commercial property to start with or is the fact that is is intended to resi after work mean I dont have to?(Other than for any TOGC reasons)

thanks

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