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I am not clear still , are you saying that if I am buying going concern business including land and building as freehold then I do not need to pay VAT?
I have bought care home before and never paid VAT in the purchase price. Also I am not registered for VAT as well. Please advise me
HMRC state in VAT Notice 709 that:
'Sale of land and buildings as part of a transfer of a going concern [is] not a supply for VAT purposes.'
It follows that if indeed you are so buying the sale is outside the scope of VAT. However if you are not buying the business with the property there can be occasions where the vendor must impose VAT at the standard rate on the purchase price. This can happen, for example, when VAT has been charged on rentals.
The current turnover threshold for VAT is 82K in any one year, that includes the sum of standard, reduced and zero rated supplies made, but not exempt supplies.
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