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VAT rules on commercial property build costs?

VAT rules on commercial property build costs?

Didn't find your answer?

Forgive me, it's been a long day and the answer may be staring me in the face, but I just can't find it.

I have personally owned a commercial property for many years (it has no option to tax on it) which was rented out on a commercial basis for many years (rightfully, no VAT was ever charged on the rent and neither am I registered for VAT).  A few years ago it became delapidated and the tenant moved out.  I now want to completely demolish it and build a new commercial property to rent out (not to a charity), to a VAT registered business, either building it in my own personal name before renting it personally, or sell it to my limited company who would build it before renting it.  It's important to me that I can claim back all the VAT on the build and builders' costs.  Is this possible?  If so, what is the correct method to going about this?  I very much appreciate any advice. 

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By shaun king
09th Dec 2016 17:33

It is possible that is what a VAT consultant or your accountant will be happy to help you with - for the appropriate fee, of course!!

The answer was staring you in the face!!

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By tom123
10th Dec 2016 11:38

In order to claim back the vat on the inputs, you will need to opt to tax the building on it's completion and charge vat on the rent - assuming you are not using it for the purpose of making taxable supplies from your own business.

As with all things property related, big money is usually involved, so you need fully considered paid for advice.

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By Portia Nina Levin
10th Dec 2016 11:57

Because if you ask a question on a forum like this you get responses such as this one which is not necessarily correct. It is significant that the building is a new building and will remain so for three years.

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Replying to Portia Nina Levin:
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By tom123
10th Dec 2016 22:12

Bollocked again - perhaps I should put my certificates through the shredder!!

Hence why I did say paid for advice is the best thing to get. I am sure Portia will give you a good rate OP.

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Replying to tom123:
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By Portia Nina Levin
11th Dec 2016 12:54

It is also significant that I did not say that your response was (necessarily) incorrect.

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Replying to Portia Nina Levin:
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By tom123
11th Dec 2016 13:08

aweb would be very dull without you around, Portia, :)

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