Vat payable on lease sale

S

shopgirl

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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.

Solicitor is right to flag the issue .

mf
 
Thanks for quick reply.

I was registered for vat about 8 yrs ago, not currently registered so presume I will have to re-register.

Purchaser is vat registered.
 
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
 
U should seek professional VAT advice on this - complex area of tax law. The cost of getting it wrong are likely to be significant!!
 
Hi there BPC,

Just wondering about VAT on taking on a new lease - somebody has told me that I may have to pay VAT on this - is there any way around this, I wonder?
 
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