Hi, I have built a large 7-bedroomed house with 4 holiday cottages. I now plan to apply for permission to turn the house into a Guest House. My investigations imply that as a guest house, or even with the intention of the house becoming a guest house, I will not be able to reclaim VAT on build materials. If I personally (presumably as self-employed) register for VAT, will I be able to reclaim any VAT on the build and if so are there any limitations on what is claimable?
Assuming that I can reclaim the VAT as above.... I have already started to rent out the four cottages. To do this I set up a Ltd company. As yet, there is no need to register this company for VAT.
Is it OK for me to have a VAT registered Sole-tradership whilst renting out the cottages via a non-VAT registered Ltd company.
Will I have to charge the Ltd company for use of the premises?
I have borrowed £300,000 from my IT Limited company to assist with the build. Is there any way I can count any of this as a business loan (as opposed to a directors loan), either to the sole-tradership or to the limited company, thus preventing the need to pay 25% tax, 9 months after my year end? Could my limited company take any %age interest in the other businesses?