Basic position is that a vat registered company which has a normal trade as consultants, has bought some derelict properties on a site
Properties have been disused for several decades but were residential prior to falling into a state of disrepair
Company has bought them and is incurring costs to make them habitable - once renovation is complete the company will rent them out as individual properties to private individuals
Can the company reclaim any input tax on the renovation cost or is it disallowed as the eventual supply of renteed property will be vat exempt?
Thanks in advance