Im trying to find some info on HMRC website but cant find any thing, that gives me a simple answer (Surprise)
If I was a property developer, buying houses for renovation, when they are revamped and ready to sell, would I have to add VAT onto the price? My guess would be no, but it would be worth being registered for standard VAT because the auction fees (and potentially) contractor fees would charge me VAT which I assume I can claim back- so always in a repayment situation. Would I be correct in my assumptions?
Trying to find this out on HMRC is like finding a needle in a hay stack,
That's where I started, that all seems to be relating to that actual builder invoicing the owner. Im trying to find out, if my business was to sell a few houses in a year, would I have to charge VAT on. Im thinking not, but im not sure.
Hi Stuart
Its not as simple as that. Sorry - but no-one could answer your question just as it is as there just is not enough information in the question and for starter it depends on the qualifying nature of the actual properties/if they have been abandoned and empty for some time/being converted etc etc. The guide I suggested does have the answer in it as it covers builders/renovators /resi and no resi and a lot more besides. If you go though from the very beginning you can start to eliminate what is not relevant or what is for your own properties - good idea is to print it out perhaps and go through and tick what is relevant?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Lots of variables, so you should really take some specialist advice.
But, basic rules (as per PN 708)
- buy house; refurb; sell - VAT exempt - you can't register;
- buy commercial building, convert to house; sell - zero rated - register for VAT, and reclaim VAT;
- let houses - exempt - you can't register.
And, some refurb/conversion works will be eligible for the 5% rate. If you do not register for VAT, this will reduce the irrecoverable VAT cost.
(Sorry, it is complex!)
Use the look inside feature and look at the contents, specifically chapter 26... When Les say's that something is complex you'd better well believe it!
... Actually, that books not a bad price, is the 16/17 edition out yet? I sense another acquisition coming on.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
