Property VAT Advice

Property VAT Expertise

Property transactions involve complex VAT rules that can significantly impact transaction costs and cash flow. Property VAT requires careful consideration of options to tax, zero-rating provisions, and exemption rules. Acumon's property VAT service provides expert advice to optimise VAT treatment and ensure compliance.

Our team includes VAT specialists with extensive experience in property VAT, including development projects, property investment, commercial and residential letting, and property disposals. We understand the complexities of property VAT and can help businesses and individuals navigate these challenges effectively.

Property Development VAT

Property development projects have specific VAT implications. Our service includes:

• Zero-Rating for New Builds: Advice on zero-rating provisions for new residential buildings and qualifying conversions
• Option to Tax: Guidance on when to opt to tax commercial property and the implications of opting
• Development Input Tax: Maximisation of input tax recovery on development costs through appropriate VAT treatment
• Construction Services: Advice on VAT treatment of construction services, including reverse charge provisions
• Land Transactions: Guidance on VAT treatment of land purchases and sales
• Mixed-Use Developments: Expertise in VAT treatment of mixed-use developments combining residential and commercial elements

Property Investment VAT

Property investment requires careful VAT planning. Our service includes:

• Commercial Property Letting: Advice on VAT treatment of commercial property letting, including option to tax decisions
• Residential Property Letting: Guidance on VAT exemption for residential property letting
• Property Acquisition VAT: Analysis of VAT implications of property acquisitions, including transfer of going concern provisions
• Property Disposal VAT: Advice on VAT treatment of property disposals, including capital goods scheme implications
• Property Management VAT: Guidance on VAT treatment of property management services
• Capital Goods Scheme: Management of capital goods scheme adjustments for property acquisitions and disposals

Option to Tax

The option to tax commercial property is a critical decision that affects VAT recovery and future transactions. Our service includes:

• Option to Tax Analysis: Evaluation of whether to opt to tax commercial property, considering input tax recovery and future disposal implications
• Option to Tax Notification: Preparation and submission of option to tax notifications to HMRC
• Revocation of Option: Advice on circumstances where option to tax can be revoked
• Automatic Revocation: Understanding of automatic revocation rules, including six-year rule and change of use provisions
• Anti-Avoidance Rules: Guidance on anti-avoidance rules that prevent option to tax in certain circumstances

Transfer of Going Concern

Property transactions may qualify as transfers of going concern (TOGC), enabling VAT-free transfers. Our service includes:

• TOGC Qualification: Assessment of whether property transactions qualify as TOGC
• TOGC Conditions: Advice on conditions required for TOGC treatment, including business transfer requirements
• TOGC Documentation: Preparation of documentation to support TOGC treatment
• TOGC Planning: Strategic planning to structure transactions to qualify for TOGC treatment where beneficial

Capital Goods Scheme

The capital goods scheme requires adjustments to input tax recovery over a 10-year period for certain property acquisitions. Our service includes:

• Capital Goods Scheme Application: Identification of property acquisitions that fall within the capital goods scheme
• Annual Adjustments: Calculation and submission of annual capital goods scheme adjustments
• Disposal Adjustments: Calculation of final adjustments on disposal of capital goods scheme property
• Change of Use Adjustments: Calculation of adjustments where property use changes between taxable and exempt

Why Choose Acumon for Property VAT Advice

• Property VAT Expertise: Extensive experience in property VAT, including development, investment, and letting transactions.
• Option to Tax Strategy: Expert advice on option to tax decisions that optimise VAT recovery and future transaction flexibility.
• TOGC Planning: Strategic planning to structure property transactions to qualify for TOGC treatment where beneficial.
• Capital Goods Scheme Management: Expert management of capital goods scheme adjustments to ensure compliance and optimise recovery.
• Integrated Service: Combined VAT, tax, and property expertise enables comprehensive support for property transactions.
• Transaction Support: Comprehensive VAT support throughout property transactions, from acquisition through to disposal.