liteweight said:You should also realise that if you decide to sell the property you must de-register or else you will have to pay vat on the sale.
markowitzman said:does landlord have to register other properties in portfolio for vat as well and/or charge vat on rents on other properties?
bazermc said:Deregistering will not negate your obligation to charge VAT on a subsequent sale once you have claimed back the VAT on the purchase you keep the property within the VAT net.....this seems to be a common misconception that people have
markowitzman said:does landlord have to register other properties in portfolio for vat as well and/or charge vat on rents on other properties?
liteweight said:Logically, I don't understand how someone who is no longer registered for vat can be charged vat in the future.
bazermc said:because the supply is taxable and the registration threshold for property transactions is nil
San Martino said:One point to note..... at least as I understand it. If you recover vat on the purchase on a property, then when you sell it you pay CGT on the purchase price net of vat - this will result in a higher cgt charge than if you never reclaimed the vat - so it may be a case of comparing the cost of this additional cgt against the benefit of the interest free loan (assuming prices continue to increase), and the hassle of registering for vat and doing bi-monthly vat returns.
San Martino said:Liteweight,
I believe it is true because capital gains tax is based on the cost of the property and if you recovered the vat at the time of purchase, your base cost is the net of vat cost.
However, I could be wrong......
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