How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TaxRobin Your Own Question
TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15329
Experience:  International tax
14155347
Type Your Tax Question Here...
TaxRobin is online now

Our client has made an 'opt to tax' when purchasing a commercial

Resolved Question:

Our client has made an 'opt to tax' when purchasing a commercial property in order that they do not pay input VAT on the property but would they still pay VAT on the stamp duty if the 'opt to tax is applied?
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello and thank you for allowing me to assist you.
For stamp duty land tax purposes, on sale of a new non-domestic building, the amount or value of the consideration is the gross amount inclusive of VAT.
Therefore, where VAT is payable on the sale of new, non-residential property, stamp duty is calculated on the VAT inclusive consideration. This point was confirmed in Glenrothes Development Corporation v Inland Revenue Commissioners 1994 SLT 1310.
Customer: replied 2 years ago.

If the company have an 'opt to tax' certificate and does not pay VAT on the purchase, does the company have to pay it on the stamp duty part of it?

Expert:  TaxRobin replied 2 years ago.
Yes the stamp duty portion would apply for VAT.
TaxRobin and other Tax Specialists are ready to help you

Related Tax Questions