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Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Hi,I have built a large 7-bedroomed house with 4 holiday

Customer Question

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?





Submitted: 4 years ago.
Category: Tax
Expert:  Nicola-mod replied 4 years ago.

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Customer: replied 4 years ago.

It appears that you are unable to find someone able to answer, so please refund. Haven't any of your experts explained why they are uable to take the question?: