VAT when transferring small office to an LLP?

VAT when transferring small office to an LLP?

11:31 AM, 10th June 2021, About 3 days ago

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I am considering transferring a small office investment into a family LLP. The property has been opted for VAT. The property was bought with vacant possession recently and has remained vacant, this would eliminate a Transfer a business as a going concern option.

So my question is: If I transfer the property to an LLP free of charge – where I would be a member – would there be any VAT implications?

Any feedback greatly appreciated

RW

Editor’s Note:

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

The effect an option to tax has

Supplies of land and buildings, such as freehold sales, leasing or renting, are normally exempt from VAT. This means that no VAT is payable, but the person making the supply cannot normally recover any of the VAT incurred on their own expenses.

But you can opt to tax land. For the purposes of VAT, the term ‘land’ includes any buildings or structures permanently affixed to it. You do not need to own the land in order to opt to tax. 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.



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