I am in the process of selling a lease on a shop (19 yrs remaining) Solicitor thinks I may be liable for vat when I sell the lease. Have contacted the tax office but am still waiting for an answer, it seems to be a very complicated area, to compound the issue, the laws governing property/lease sales are changing on 1st July! Any advice would be appreciated. Many thanks
A. It is complicated
B. Are you VAT registered?
C. Will a prospective purchaser be VAT registered?
D. Ask your Accountant for VAT advice or recommendation to a good VAT expert.
E. Do not sign anything until you are quite sure of the VAT implications of what you are doing.
IIRC you can apply to the revenue for using a VAT form 4A so that neither side pay vat, but i cant remember if applies to resale it does for new leases, sorry