VAT & Commercial Property - Avoid Costly Mistakes

Introduction

This area of VAT is particularly complex and mistakes are costly.

This live broadcast session will explain the VAT rules on commercial property, including how to maximise VAT recovery.

The session will also highlight the VAT traps to avoid. A background knowledge of VAT and property is assumed.

What You Will Learn

This live and interactive session will cover the following:

Construction of Commercial Property and Reclaiming VAT

• Definition of commercial property
• Tax points for the project
• Anti-avoidance measures on delayed payments
• Deemed supply on use of own staff
• Mixed residential and commercial - how to apportion
• Change of intention and the effect on input tax - ‘payback and clawback’

Supplies of Commercial Property

• Freeholds and leases - exempt or standard rated?
• Renting out commercial property and the effect on input tax
• Balhousie Holdings Ltd v HMRC (2021) - The VAT elements of sale and leaseback

The VAT Option to Tax

• Benefits
• What is covered and what is not - extensions, enlargements and linked buildings
• Who is responsible for opting? One person's option does not bind another
• How to take the option properly - requirements, timings and proofs
• Automatic, permission, and de facto options
• Destruction of opted buildings - does it matter?
• Disapplications of the option - residential and charity use traps and opportunities
• Innocent transactions hit by the anti-avoidance measures
• Global and real estate elections
• VAT groups
• Revocations after 20 years

Other Matters

• Supplies between landlords and tenants
• Surrenders, assignments and inducements
• Rental guarantees and dilapidations
• Transfers of Going Concerns (TOGCs) containing property and rental business conditions
• The VAT Capital Goods Scheme

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.