Register for VAT to buy investment property

[Sam]

I believe it is possible to register for VAT and reclaim the VAT portion of the cost of the house?
I understand I must then pay VAT on all rental proceeds and eventually sale proceeds?
I am looking for advice re above as I am considering registering for VAT and purchasing an investment property

 

[stuart]

It is possible

It depends on the purchase price and the expected rental income whether it makes commercial sense or not
But also depends on how fast you are trying to grow a portfolio of property

Generally for ordinary properties it in my opinion is not worth it

You will also be obliged to charge and remit VAT on all rental income on all properties you own, even if you did not receive a VAT refund when they were purchased

There are ways round having to chagre VAT on any other properties and also having to charge VAT on any subsequent sale

It is a very specific area of tax legislation that if structured properly can save you a lot of money but if not if it can cost you a lot of money

If you are going to do it, you should get professional advice

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