VAT registration entitlement case study

VAT & property case study #2

What do we do?

Our role is to help you understand how the VAT exemption, 0% & 5% relief rules work for a particular situation and bear the lowest possible VAT costs.  There are all sorts of VAT reliefs running through most sectors and you probably already know the rules relating to the property sector are both complicated and frequently misunderstood.  So these grey areas are where we work and were very evident in this blog VAT & property case study #2. 

VAT & property case study #2 was being put together by a client who used property as an investment vehicle and had a very different day job.  This mix of responsibilites makes getting hold of the VAT rules even harder – which is how we can help.

Here’s an outline of a recent property project

The project at the centre of VAT & Property case study #2 involved a series of mixed use existing properties in Herts & Berks were being variously extended and improved to create new dwellings to be let on completion – again this meant that VAT could not be reclaimed but the same device as under 1 above would not work (not empty for >10-years).  By using and securing the two-year empty rule and tweaking the lay-outs we were able to carve out some units that qualified as new build so no VAT on associated costs and maximise 5% VAT rate on the rest of the work which significantly reduced the resulting VAT costs on the whole development portfolio.

If you’re ever not sure about VAT related then please give us a call. Remember sooner is always better.

Posted in Case Study, Property.