VAT on property purchase

killiank

HI,

I am looking into buying a freehold property personally with the view to developing it into a retail outlet & leasing it to a company that will run the shop.

Currently I am not vat registered in a personal capacity. The price being quoted for the premises in question has been quoted inclusiveof VAT. If I register for VAT can I reclaim back the VAT on the purchase. I presume that I will then charge VAT to the company that I lease the site to.

Are there any other considerations that I should be aware of.

Many Thanks in advance.

peter redmond

is it a new property?

are you going to VAT on the leases....

killiank wrote: »

HI,

I am looking into buying a freehold property personally with the view to developing it into a retail outlet & leasing it to a company that will run the shop.

Currently I am not vat registered in a personal capacity. The price being quoted for the premises in question has been quoted inclusiveof VAT. If I register for VAT can I reclaim back the VAT on the purchase. I presume that I will then charge VAT to the company that I lease the site to.

Are there any other considerations that I should be aware of.

Many Thanks in advance.

killiank

Hi Peter,

Thanks for your response.
Yes it is a new property. THe company that I will be letting the premises to will be VAT registered so I would intend to charge VAT on the monthly lease invoices.

paddydriver

There is some way around this in that the VAT you are due to pay on the purchase is offset against the VAT you will take in on renting the property - can't remember the technical name for it but accountants will know it.

Legend100

somehow i think this thread might be closed

When you say new, you will actually need to find out when it was completed as "new" is a very specific term under Vat on property legislation

killiank

OK,

Thank you everyone for your replies. Its obviously a much more complicated topic than I had anticipated. Its one I will direct to the accountants.