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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 7980
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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I am selling a 500year old barn that has been converted into

Customer Question

I am selling a 500year old barn that has been converted into 4 holiday cottages. The conversion was done 20 years ago. Am I correct in assuming that there is no vat to pay on this sale
JA: What is your retirement age?
Customer: why is that relevant?
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Customer: no
Submitted: 15 days ago.
Category: Tax
Expert:  taxadvisor.uk replied 15 days ago.

Hello and welcome to JustAnswer. I’mCustomer a UK qualified accountant. Reviewing your question and will respond to you shortly.
Many thanks

Expert:  taxadvisor.uk replied 15 days ago.

Thank you for your question..

Please advise if you opted to tax land and buildings for VAT purposes.

Many thanks

Expert:  taxadvisor.uk replied 14 days ago.

Hi there

Without the informationrequested in my first/previous response, I can only give you a general answer,but I hope this helps.

Supplies of land and buildings, such as freehold sales, leasing or renting, are normally exempt from VAT. This means that no VAT is payable.

Once you have opted to tax all the supplies you make of your interest in the land or buildings will normally be standard-rated, and you will normally be able to recover any VAT you incur in making those supplies.

I have assumed you did not opt to tax (charge VAT on) land and buildings for VAT purposes. This being the case there is no VAT to pay on the sale of holiday cottages.

If you did there are circumstances when you can revoke this option to tax. An option to tax cannot normally be revoked until at least 20 years have passed.

More information on this is covered under 8.3 on VAT Notice 742A here

https://www.gov.uk/guidance/opting-to-tax-land-and-buildings-notice-742a

My aim is to give you a professional service. I hope this is helpful and answers your question.

If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.