VAT on Property Transactions

Liability of Construction Costs

The VAT liability of construction costs can vary depending upon what type of work is being done and for whom. Covertax can advise on the correct VAT liability of supplies and may be able to suggest areas in which savings can be made. For example, if you are buying an old property that has been empty for at least two years, you may be eligible for favourable VAT treatment. You may only need to pay VAT at 5% on renovation work.

Listed Buildings

Covertax has worked extensively on construction projects involving listed buildings. If you are developing or altering a listed building we can advise you whether zero-rating can apply to some of the costs incurred.

Use of the Option to Tax

The option to tax is a useful tool but, in our experience, one that can be used in the wrong circumstances and create future issues. We can advise on the use of the option to tax and the effect of the disapplication legislation.

Mitigating VAT and Stamp Duty

If you are considering buying a commercial property please give us a ring and discuss whether we can assist you in achieving both VAT and SDLT savings.  Call Steve Botham on 0845 643 5450.