Is Selling a VAT able property a Good Idea

When you are moving premises you need to think carefully about the VAT implications. Sometimes, if you sell your property and move to another you may have to repay some of the VAT you reclaimed when you bought the property.

Where you buy a property on which the seller has “opted to tax”, VAT is payable on the purchase price. But as long as you’re registered you can reclaim this. Then, when you sell the property you must charge VAT to the buyer, who in turn can reclaim this, and so on. It’s a straightforward pay-and-reclaim cycle, but if you sell to the “wrong” type of buyer you might break the cycle and land yourself with a VAT bill you can’t reclaim.

Thus, you need to be careful as to whom you are selling the property. Contact KVS Accountants for all related tax advice. KVS acts as tax accountants in Putney, Wandsworth, Southfields, Wimbledon, Chelsea, Kensington, Earls Court and Hammersmith.

 

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