VAT Partner, Sandy Cochrane, has created a comprehensive video addressing common issues associated with VAT and Property. The intricacies of VAT in land and property transactions are complex, so it is important to understand the nuances. Accurate reporting of VAT is imperative to prevent potential penalties from HMRC.
Historically, VAT has been considered a ‘support service’, however this has evolved rapidly with UK VAT being one of the largest income streams for HMRC, contributing £160 billion annually to the treasury.
Key areas covered include residential considerations such as extensions, additional floors, empty homes, and the intricacies faced by DIY builders. On the commercial front, understanding the historical context of land or property acquisition is essential, as it may impact both the recoverable VAT and influence future supplier engagements.
What next?
This video is an introduction to a highly complex subject and care needs to be taken to ensure that VAT is accounted for correctly. We suggest seeking professional advice, as it far outweighs the potential consequences of having inaccuracies, so please contact our VAT team here, given our expertise in navigating this complex VAT landscape.
