VAT on property

VAT on property

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If a garage has been converted into dwellings and is then sold are there any VAT due? The property was never treated as a business asset and the business is not VAT registered.

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chips_at_mattersey
By Les Howard
01st Feb 2016 21:41

Property & VAT

Sale (first grant of major interest) of converted property is zero rated. These are taxable supplies meaning that registration is mandatory, assuming turnover exceeds £82,000. Iin your case, input tax can be claimed, so why wouldn't you register?

But; what sort of garage? Was is a motor trade premises? Or a garage associated with a dwelling?

As always with property transactions, fuller professional advice is essential.

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