VAT help
oh confused one
Registered Posts: 128 Dedicated contributor 🦉
Hi I am currently waiting to resit just one exam to complete the AAT (old standards). Someone has asked me a question about VAT and am a bit confuddled.
Basically they have started their own business buying properties, doing them up and then renting them out - can they become VAT reg'd and claimback the vat they have paid out for goods to do houses up etc
Basically they have started their own business buying properties, doing them up and then renting them out - can they become VAT reg'd and claimback the vat they have paid out for goods to do houses up etc
0
Comments
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Hi,
Have you looked at the HMRC website about this is? I have looked around the internet - I think this link may go some way to answering your question. http://www.accountingweb.co.uk/anyanswers/rental-income-and-vat/480684
Have a look and see what you think.0 -
If he is buying them to rent on a purley residential basis then this would be VAT exempt and i wouldn't claim any VAT (I think).
What sort of property does this person rent out?0 -
If a person was running a property business and their only revenue was from renting out either domestic or commercial properties then these services would be deemed exempt from VAT.
A person providing solely VAT exempt services cannot register for VAT because they will have no output tax to account for and they cannot claim input tax when they are only providing exempt services.
If the person running the business rents commercial property and wants to reclaim VAT on their purchases for improving the property then they could elect to opt to tax.
This means the property business elects to charge standard rate VAT on their rents. In return the property business has the right to reclaim all VAT in relation to the commercial property being rented out.0
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