My clients are a husband and wife who are starting in business buying, doing up and selling houses. My question is, in essence, simple - would the supplies be exempt supplies for VAT?
They would be dealing with one property at a time, and the purchase and sale would be outright, ie no messing around with leases, retained rights, renting etc etc. My instinct is that the supplies would be exempt under VAT Act 1994 Sch 9 para 1 (first line), but I've been around VAT long enough to know that the subject is rarely simple.
Can anyone see a catch?
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You should note that some services of refurb can be at 5%, which will reduce your irrecoverable VAT cost. Start with HMRC Notice 708 for the details.