Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Implications of "joint option to tax" sale of commercial building

  • 20-05-2020 7:11pm
    #1
    Some_randomer
    Registered Users, Registered Users 2 Posts: 420 ✭✭


    There’s a commercial building for sale on a main street in a town down the country that requires substantial refurbishment. It has retail units on the ground floor and some living space overhead. The sale is listed as a “joint option to tax” which means the purchaser will have to pay VAT.

    What I’m wondering is if I buy the property for a business that I’ll be setting up in the next few months (i.e. company isn’t set up or registered yet):

    - can the vendor force the sale as joint option to tax or is it optional?
    - can I re-claim the VAT when the company is set up?
    - could / should I sell the building to the company when the company is up and running?
    - are there any other implications I'd need to be aware of?

    Thanks in advance.
    Tagged:


Comments

  • #2
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    Some_randomer wrote: »
    There’s a commercial building for sale on a main street in a town down the country that requires substantial refurbishment. It has retail units on the ground floor and some living space overhead. The sale is listed as a “joint option to tax” which means the purchaser will have to pay VAT.

    What I’m wondering is if I buy the property for a business that I’ll be setting up in the next few months (i.e. company isn’t set up or registered yet):

    - can the vendor force the sale as joint option to tax or is it optional?
    - can I re-claim the VAT when the company is set up?
    - could / should I sell the building to the company when the company is up and running?
    - are there any other implications I'd need to be aware of?

    Thanks in advance.

    You can negotiate any clause, but I am guessing that they will not sell because of CGS adjustments. You will also need to be aware of it as you will be subject to it, you will need to stay registered for VAT for the Vat life of building to avoid CGS adjustments as well. You should get advice on this.


Advertisement