There's a proposal to build an extension on to our reception area to create more space. We are VAT registered and the building hasn't opted to tax (to the best of everyone's knowledge).
We've no experience of VAT on building works, would we be charged VAT on the building costs (including architect's fees) and if so would we be able to reclaim anything?
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Do you use this reception area as your premises re your vat registered business? (pertinent re vat reclaim)
What is your tenure re the property? (Not a vat question)
What is the total spend? (capital goods considerations re vat)
The reception is part of our VAT registered business. We're on a long peppercorn leasehold, about 85 years to run. Total spend say £100k + VAT.
Well, on that basis I am not sure there are really any issues, however you really want one of our resident vat experts to pronounce on this ( I am certainly no vat expert) and for that sort of money we would (and do) pay a vat consultant to get written guidance on which we can rely.
I can recommend Les, a VAT consultant. His profile is here https://www.accountingweb.co.uk/profile/leshoward
Thanks to JoF for the introduction.
I would expect VAT to be recoverable, but the question over who owns what should be addressed too. Hopefully the landlord will be amenable to being part of the discussion.