I have a client who has sold a building (used for production of food and catering). This buiding as an option to tax on it.
It can not qualify as a transfer of a going concern
The client will charge VAT on the sale, the purchaser will claim back the tax. The purchaser will not register for an option to tax on the building but as I understand it can still claim back the inoput tax because he will be using the building for a taxable purpose.
Have i understood this correctly
Many thanks
Replies (2)
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Sounds right.
But we do recommend someone double check the documentation.
And, any exempt use within ten years from purchase may trigger a CGS adjustment.
And, any exempt use [*] within ten years from purchase may trigger a CGS adjustment.
[* including sale]