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Revoke An Option To Tax after 3 years?

Revoke An Option To Tax

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Hello all

Got a new client who opted to tax his commercial property when bought it from previous seller saving 20k on VAT.

Now he is planning to rent to it to his own vat registered ltd company. I remember reading the GAAR that it is not allowed to be rented to connected person. The client seems to know this too and want to pay back the VAT if needed.

Anyone has any experience or link to any guidences in this matter.

I am going to call tomorrow to the Opt to Tax Team to get some guidance too.




Replies (4)

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By Duhamel
10th Aug 2020 09:43

Is the limited company partially exempt? Or do you expect to be able to fully reclaim the VAT suffered by the company?

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Replying to Duhamel:
By EmmaJee
10th Aug 2020 21:41

It is a used car dealership so not exempt. operating vat margin scheme and so on.

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By Wilson Philips
10th Aug 2020 10:41

What has the property been used for during the last 3 years?

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Replying to Wilson Philips:
By EmmaJee
10th Aug 2020 21:40

It was available to let but no tenants or rental income.
I see all nil VAT returns submitted.
Now they want to move to the property themselves.
the sole director of the company own the property.

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