12:00 PM, 9th January 2014, About 10 years ago 1
I am in a predicament and my accountant is confusing me even more. My husband and I have jointly owned a commercial property over 10 years of which ground floor has been let to retail business. The whole of the building is Vatable and we charge vat on the rent to the retail tenant. The upstairs had been empty offices for which we obtained planning permission to convert into 2 flats and have completed in September 2013. We want to keep the building as an investment tool but wish to sell the flats to my husband by creating leases and release the funds and save on CGT ( between spouses). We also want to claim the vat charged on the materials used for the conversion. My question is that can we claim the full vat on the materials and can I sell to my husband or anyone else without charging vat ? Am I correct in thinking that the flats are out of the vat region as soon as the conversion took place? My accountant is giving me conflicting answers and I am wary that the time to claim VAT back for the materials from HMRC is running out !
I would be grateful for any advice and suggestions to clarify this please.
Any suggestions of an ace property accountant would be welcome too, we are based near Windsor.
Previous ArticleHow am I doing?