VAT in connection with building shops and flats

What is the vat treatment for building shops and flats on an option to tax property

Didn't find your answer?

One of my clients had purchased a farmer pub building and opted to tax in order to claim back vat which he was being charged on the purchase a few years ago. He is now building some shops on the ground floor and also the residential flats upstairs. Please advise me how this building work should be treated for the vat purposes. Should I claim vat on all building costs including the flats?

Any help would be grately appreciated. 

Thanks

Replies (7)

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RLI
By lionofludesch
07th Nov 2017 15:18

"Farmer pub" - took me ages to realise you meant "former".

You say he's "building some shops".

Has he razed the building to the ground and started again or is he converting the existing building?

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paddle steamer
By DJKL
07th Nov 2017 15:20

What is he going to do with the flats once they are built?

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Portia profile image
By Portia Nina Levin
07th Nov 2017 15:23

I take it that there's only a few quid involved, given that you're content to just get advice from a bunch of random numpties off the internet?

Thanks (2)
Replying to Portia Nina Levin:
RLI
By lionofludesch
07th Nov 2017 16:53

Portia - you do yourself an injustice. In no way are you a random numpty.

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Replying to lionofludesch:
Portia profile image
By Portia Nina Levin
07th Nov 2017 17:08

But I'm not attempting to give the OP any advice.

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By Ruddles
07th Nov 2017 15:26

He is building some shops on the residential flats? Is he adding a new storey to the building?

It might help if you were to explain exactly what he is doing and what he intends to do once all works completed. But that would be asking the questioner to provide all relevant information upfront and, as we know, this site doesn't seem to allow that.

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Replying to Ruddles:
Portia profile image
By Portia Nina Levin
07th Nov 2017 15:33

They shouldn't be providing all that information here. They should be taking all that information to somebody who's charging them a proper fee for advising them.

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