Hi All, Just looking for a comfort blanket here because the numbers are big!
Client has a small barn conversion complex used for FHL's. Previous owner opted to tax, client took over as TOGC and that included option to tax without taking any advice prior to purchase (anyone heard that before?!)
7 years on they're fed up with the FHL game, and by hard work and a bit of luck got change of use and full residential PP on all the units.
As far as my reading of all the VAT literature goes, a sale of a residential dwelling is always exempt, and therefore that over-rides the option to tax, so each unit is sold without any vat being chargeable by the vendor or payable by the purchaser.
Am I correct that on the sale of the final unit, the option to tax effectively ceases to exist? Are there any notifications client needs to send in to HMRC to let them know that? Or just deregister and wait for the inevitable questionnaire?
(I am pleased to say that the Capital Goods Scheme does not apply, not enough was spent by client or their vendor).
Thanks in advance for any pointers to elephant traps I have missed.