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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4770
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I am looking to buy a vat registered unit that is currently

Customer Question

I am looking to buy a vat registered unit that is currently rented out with 2 years to run on the lease after which I will move my business in. My bank will lend me the money to buy only if I buy the property either myself or in the form of a simple business partnership with my wife and then lease the building to my company.
Can the simple partnership I form be immediately registered so that I can claim the substantial vat on the purchase back asap and be able to charge vat on the rent to the current tenants and then my company when it moves in?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
, I'm Keith and happy to help you with your question.
Yes, you can, but there is a snag. When you finally come to sell you will have to charge VAT on the sale invoice and this may make your property un-competitive in the market as non registered VAT buyers may baulk at an extra 20% on the sale price.
I do hope I have shed some light on your problem .