My query relates to a farmer client who recently acquired 3 holiday lets as part of a farm purchase. He has reclaimed VAT on alot of repair/improvement costs through the farm prior to letting the properties. He has now come to let out the properties and found that he must charge VAT. Is there anyway he can transfer the properties to another business (could be a limited company or in his wifes name - she looks after the holiday lets anyway) and not repay the VAT on the repairs. We initially thought about a long lease to the new entity (which would then holiday let the properties) so the letting would be zero rated but VAT notice 708 seems to exclude holiday lets from zero rating (although I'm not sure these properties fall within the definition here - there is no actual restriction on use or occupancy, they are just holiday let because they are surplus to requirements on the farm my client bought). The income from the 3 properties is below the VAT registration limit.