VAT on investment property

Hi,

Sorry if this turns out to be the sillyest question ever asked on this forum but.....

I have just purchased a residential property in the midlands for investment purposes and I was told by a friend that I could claim the VAT back on it as I will be renting it.

Is this fact or fiction?

Many thanks
John

you can reclaim the VAT, but you will need to harge VAT on therent, which wil lmake it very expensive to a private tenant.

Hi
You need to register for Vat before you take ownership of the property.


Check the FAQ's as there is plenty of info on this.

Ravima said:

you can reclaim the VAT, but you will need to harge VAT on therent, which wil lmake it very expensive to a private tenant.

Click to expand...

If you are of course letting to a corporate tenant then if they are VAT registered they can claim the VAT back unless a private tenant.

Probably not worth it as it pushs up the rent rate by 17.5% ( UK VAT rate, is it 21% in ROI?) and you'll not be comprtitive against other landlords. Not enough in it to make it worthwhile IMO.

This has been discussed many times on AAM. See here