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VAT registration residential prop dev

Prop Dev Co currently only involved with residential prop dev but going to expand into prop maint

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We are a limited company currently buying, refurbing and selling on residential properties therefore not VAT registered.

Looking to do property maintenance contracts as a separate arm for the business, so do we register for VAT and only claim on any expenses relating to this part of the business and all expenses re prop dev still entered as zero rated?

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By Les Howard
22nd Feb 2021 15:41

Most disposals of residential property (sales & rents) are exempt from VAT so do not count towards your registration threshold. You are switched on for reduced rate for some refurbs, I assume.
Property maintenance is taxable, so when you reach £85k you have to be registered. And you are correct that input tax related to this is allowable. Input tax related to exempt activities is not. Technically, this is 'partial exemption.' HMRC Notice 706 will give you some assistance.

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By thejho
22nd Feb 2021 17:01

Thank you for taking the time to answer :)

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