Property elected for VAT

[Damian Q]

Hi

I am interested in a couple of commercial properties that I would look to convert to residential, they are both elected for VAT. How will it work when selling the individual units how do I recoup the VAT ? 

Thanks in advance

Damian

[taxantics]

You can ensure you don’t pay VAT on purchase by completing VAT form 1614D. It’s in your interest to do this as you’ll pay SDLT on the VAT if you don’t. As long as it’s commercial to residential conversion, you’ll achieve a no VAT result. I’d recommend getting professional support but the forms here: https://www.gov.uk/government/publications/vat-certificate-to-disapply-the-option-to-tax-buildings-for-conversion-into-dwellings-etc-vat1614d