News

MEDICAL

TAX AND BUSINESS

GP MEDICAL

The Sandisons Logo

MENU

CONTACT

Changes to a building after the VAT option to tax

Source: HM Revenue & Customs | 09/01/19

There are special VAT rules that allow businesses to standard rate the supply of most non-residential and commercial land and buildings (known as the option to tax). This means that subsequent supplies by the person making the option to tax will be subject to VAT at the standard rate.

The ability to convert the treatment of VAT exempt land and buildings to taxable can have many benefits. The main benefit, is that the person making the option to tax will be able to recover VAT on costs (subject to the usual rules) associated with the property including the purchase and refurbishment of the property.

If you make changes to a building (such as an extension) after you have opted to tax then the option to tax will usually apply to the whole of the extended building. However, care needs to be taken for linked buildings and forming a complex where the option to tax will not always apply depending on the exact circumstances.

It is also possible to exclude a new building from the effect of an option to tax where the building is constructed on land that has been the subject of an option to tax. Care should be taken before making a final decision as this can affect entitlement to input tax recovery on associated costs. It is important to remember that once an option to tax has been made, it can only be revoked under certain limited circumstances.

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

> SIGN UP FOR THE NEWSLETTER

> LOGIN

Some accountancy websites also provide pages and pages of tax information, helpsheets, etc. We prefer to give clients personally tailored advice. So, if you want details of tax rates and allowances just go to the HMRC website on which you should find what you’re looking for. If you need more individual advice please contact us.

Below are links to websites you may find of interest, but as we like to support our local community and clients, we have included links to websites that may be of interest:

HMRC

FT

BBC

VEALE WASBROUGH VIZARDS

CESP

PRACTICE INDEX

SIMCOMM ACADEMY

More Local:

FOOTPLATE EXPERIENCE

ANGLEBURY PRESS

OFFCAMBER.CO.UK

SANDISONS

Badger House,

Salisbury Road, Blandford Forum

Dorset DT11 7QD

Telephone: 01258 451234

Fax: 01258 453280

Sandisons is the trading name of Sandisons Limited. Registered office: Badger House, Salisbury Road, Blandford Forum, Dorset DT11 7QD.  Co. Reg. No. 05068291

The Sandisons Logo