vat on property purchase

is vat reclaimable

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A small limited company which is vat registered is about to purchase a freehold office building via an auctioneer, post auction. There is no vat charged on the building however the auctioneer is charging the buying company £2,500 fee plus vat. Can the business reclaim the £500 vat?

If in the future it choses to rent out part or all of the building does it have to charge vat on the rent even though the building has not been opted to tax?

Any comments would be appreciated

 

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RLI
By lionofludesch
23rd Feb 2020 17:31

Subject to partial exemption rules, yes, the VAT can be reclaimed.

Doesn't have to charge VAT but it may be beneficial to do so.

It depends.

Seek advice based on the full disclosure of facts.

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Replying to lionofludesch:
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By User deleted
24th Feb 2020 13:07

thanks for your comments i intend to seek advice once i know the deal is proceeding
thanks again

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Replying to User deleted:
RLI
By lionofludesch
24th Feb 2020 13:17

Well, that's good.

But maybe it's too late.

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