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bigduckontax
bigduckontax, Accountant
Category: Tax
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Client has a commercial property he has always used in his

Customer Question

Client has a commercial property he has always used in his business plus 1 flat upstairs.
he has now ceased the business and wishes to develop the property into 6 flats upstairs and refurb the commercial property.
can he claim any of the vat.
many thanks
Submitted: 10 months ago.
Category: Tax
Expert:  bigduckontax replied 10 months ago.

Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.

Have a look here for VAT Notice 708 which covers this matter. Such a conversion is subject to VAT at 5% and your client has to advise his builder that it is the appropriate rate.

https://www.gov.uk/government/publications/vat-notice-708-buildings-and-construction/vat-notice-708-buildings-and-construction

As his business has ceased he cannot reclaim this input tax so it is essential that the contractor he employs uses the reduced 5% rate otherwise he will be out of pocket

I do hope that you find my reply of assistance..

Customer: replied 10 months ago.

he is managing the build. its more to do with the vat claim on materials that he has bought

Expert:  bigduckontax replied 10 months ago.

He has no claim as his business has ceased. Sorry to rain on your parade.

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