Cancelling VAT registration - Any implications?

M

Mebs

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I'm a PAYE worker. We bought a holiday home a number of years ago and paid VAT on the purchase price, registered for VAT, reclaimed it and make a VAT return on the rental income every year.

After owning it for ten years, I can cancel my VAT registration without financial penalty.

Each year I fill out a Form 11 and include my rental income in this. I've run up a bit of a trading loss (interest, repairs, etc.) and can carry it forward each year against rental income.

If I cancel my VAT registration, can I still file a Form 11 annually and continue to use my trading losses against future rental income for income tax purposes?

Are there any other implications to cancelling my VAT registration? (I'm fully up to date with my VAT returns). Thanks.
 
One word springs to mind here: MINEFIELD.

Go and get yourself to a tax practitioner who specialises in VAT on property. The rules for VAT on property have changed since you bought, so you need to tread very carefully.
 
The Form 11 and losses - this continues as per normal.

The VAT issue is completely separate and I would also suggest you contact a tax practitioner on this before doing anything.
 
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