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 Ash Your Own Question
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
Type Your Law Question Here...
Ash is online now

I have built 3 terraced houses and before build agreed to sell

This answer was rated:

I have built 3 terraced houses and before build agreed to sell two of them . On completion of build Mr Richardson put his tenants in charging them £450 per calendar month before completion of sale. He is now asking for two thirds of VAT reclaim. Has he the right to VAT and can I claim back rents he has collected before completion of sale. Thank you, *****
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

Just to be clear he is asking for VAT on the rent charged?

Alex Watts :

Was he charging the tenants directly or you for rent please?

Customer: Asking forVAT on build . Charging tenants directly.
Alex Watts :

But you did not charge VAT on the sale?

Customer: No , I did not. Sale of the two houses was £110K. He paid deposit of £25K before build started so says he is entitled to VAT on building materials etc.
Alex Watts :

Then you do not need to worry.

Alex Watts :

If you did not charge VAT on the sale then VAT can not be reclaimed.

Alex Watts :

They can only reclaim VAT if it has been charged

Customer: As regarding rents, he gave tenants 12 month contract before I knew about it . Thank you for your help.
Alex Watts :

Right. Well again, you don't need to worry about VAT

Alex Watts :

Can I clarify anything for you about this today please?

Customer: Can I claim back the rents he has had before I hand over completion of sale .
Alex Watts :

Yes because the house did not belong to him, unless you had an agreement he could rent the house out

Customer: No agreement whatsoever. You have been brilliant, thank you.
Alex Watts :

Happy to help.

Alex Watts :

Can I clarify anything else for you?

Customer: No , I am happy to know about VAT , that was my main concern,
Alex Watts :

Great. If I could ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

Alex Watts :

If you need more help please click reply

Ash and other Law Specialists are ready to help you