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TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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Our client has made an 'opt to tax' when purchasing a commercial

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Our client has made an 'opt to tax' when purchasing a commercial property in order that they do not pay input VAT on the property but would they still pay VAT on the stamp duty if the 'opt to tax is applied?
Hello and thank you for allowing me to assist you.
For stamp duty land tax purposes, on sale of a new non-domestic building, the amount or value of the consideration is the gross amount inclusive of VAT.
Therefore, where VAT is payable on the sale of new, non-residential property, stamp duty is calculated on the VAT inclusive consideration. This point was confirmed in Glenrothes Development Corporation v Inland Revenue Commissioners 1994 SLT 1310.
Customer: replied 3 years ago.

If the company have an 'opt to tax' certificate and does not pay VAT on the purchase, does the company have to pay it on the stamp duty part of it?

Yes the stamp duty portion would apply for VAT.
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