VAT on residential sale

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  • VAT on residential sale

    Under the now-operative Standard Conditions of Sale (5th edition), figures in the Contract- so far as concerns the property price and the contents- include VAT. However, Special Conditions can make explicit provision to the contrary.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

  • #2
    I beleive that partially built houses sold before site completion is a treated as a trade in supply of property and is subject to standard rate VAT. But if it is sold after site completion, it becomes VAT exempt .

    But where can you find rules for leasehold property ? Is an extension of lease from 80 years back to 99 years subject to VAT ?

    Comment


    • #3
      Assume a purchase (V to P). Whether a transaction involves P paying VAT depends on these factors:
      1. Is V a VAT-registered trader? If yes, see 2; if no, P pays no VAT.
      2. Is the transaction subject to VAT at all? It might be:
      a. zero-rated (and, if so, P pays no VAT);
      b. standard-rated (and, if so, P pays VAT); or
      c. exempt (and, if so, P pays no VAT unless V waives exemption).
      3. Unless the Contract stipulates that P must pay VAT on top of the purchase price stated, the price is deemed to be inclusive of VAT [if any]: SCS (5th. edition) say so.
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

      Comment

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        lampshade
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      • Reply to VAT paid on Apartment block maintenance
        leaseholder64
        There is someone starting from the same misunderstandings in this thread: http://www.taxationweb.co.uk/forum/v...es-t28896.html The thread covers both the trust and exemption aspects.

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        21-07-2017, 10:42 AM
      • Reply to VAT paid on Apartment block maintenance
        leaseholder64
        It appears to be exempt, so they can't claim back the VAT even if the money passes through their books.

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        leaseholder64
        This FTT ruling gives some more information (in a case that proved an exception to the exemption rules): http://landschamber.decisions.tribun...RX-48-2015.pdf The ruling notes the law is not too clear.

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        lampshade
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        leaseholder64
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