Just want to check I haven't missed anything significant regarding VAT.
My client's company (VAT registered vehicle body repair business) is in the process of constructing a new workshop on land owned by the sole director & shareholder. Total cost of the build is £90k (so no CGS implications). The company will claim back all input vat on the build.
The director intends for his company to continue to trade from this new workshop for the rest of his working life (15 years) and upon retirement would seek to retain personal ownership of the building.
There are no plans to opt to tax the building.
Given this scenario am I correct to understand that no VAT would be payable in respect of this building when the company eventually ceases to trade and deregisters from VAT and the ownership of the building is transferred from the company to the director (assuming this to be more than three years after the building is completed).