Am I considered a taxable person in this situation?

[MelF]

Grateful for any Vat experts here. I co-own a site with my spouse. A connected company of which I’m director has built a house on this site. The company has recorded €150k from me as director loan/site contribution, but legal title has not yet transferred. Before any sale to a third-party buyer, the company will acquire the site and then sell the completed new-build as sole vendor.
Is this site-to-company transfer outside the scope of VAT for me personally, or is it considered a taxable property supply/connected development supply?I know CGT will apply but any revenue guidance I’ve checked isn’t clear on Vat.

 

[Daphne]

Honestly this is absolutely the sort of question you should be paying a tax advisor to answer. VAT is one of the most complex areas of taxation and nobody without a full view of the transaction can answer this properly.

 

[jim]

The key things are:
Whether the site qualifies as development land.
Whether the transfer is connected to a development agreement.
The company's VAT status and treatment of the build costs.
The exact legal and commercial arrangements between you and the company.

 

[dublin67]

I would be very surprised if there was no vat on the sale. First sale of a residential property by a developer or someone connected with the developer is liable to vat - anti avoidance legislation and no time limit on sale. Definition of developer is anyone who develops property and not what is generally regarded as a developer. I am not a vat specialist and the only way, in my view, of getting a view that there is no vat on the next sale would be from from a vat specialist (some tax consultants may have this level of vat expertise but not all - including me).