Advising on VAT & Commercial Property - Avoid Costly Mistakes

Introduction

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

This course will explain all of the rules on VAT on commercial property in all its aspects, including how to maximise VAT recovery, and point out the VAT traps to avoid.

What You Will Learn

This course 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

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? One person's option does not bind another
• How to take the option properly and timings
• Automatic, permission, and de facto options
• Destruction of buildings
• Disapplications of the option - residential and charity use traps and opportunities
• Global and real estate elections
• VAT groups
• Revocations after 20 years

Other Matters

• Supplies between landlords and tenants
• Surrenders and assignments
• Compensation and termination payments - the latest guidance
• Rental guarantees and dilapidations
• Transfers of Going Concerns (TOGCs) containing property and rental business conditions
• The VAT Capital Goods Scheme