VAT on refurbishment on connected sub-lessee

Landlord to refurb property - can sub-lessee opt to VAT and carry out refurb?

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I may be over thinking this, but the situation is that a landlord of a newly acquired commercial property (which has not been opted to tax), wants to refurbish it and then rent to unconnected third parties, but not get the property itself tied to VAT when it comes to selling.

There's no issue with charging VAT on the rent itself.

Is there any reason why the landlord could not let the un-opted property (exempt of VAT) on a fixed term lease to a connected party in whatever legal entity, then that connected entity itself opts the leased property to VAT, refurbishes it reclaiming the VAT on works and then of course sublets to an unconnected third party with rent charged + VAT? Some of the refurb would qualify for capital allowances so would be sensible to rent at MV "without the works carried out" then this entity does the work and sublets at a profit.

Further down the line, after say five years, if the property was to be sold, the renting "middle man" can be wound up and the landlord could then sell the property without worrying about VAT...

There's bound to be some issue with connected parties etc but interest to hear opinions on this.

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