Claiming VAT back on new investment properties

[northdub]

Sorry, I just used VAT clawback to describe the money that would have to be paid back. Maybe not correct description.
When my accountant enquired about deregistering, the VAT office/revenue sent a breakdown of the VAT payments and repayments from when we registered. The sum that I owed/ would need to repay was the balance of what I have claimed (VAT of house purchase) minus what I have repayed (vat on rents, management fees, bills etc). I will look back through these documents to confirm.

I wouldn't know if you would get no consideration on the VAT already paid on rent, if you leave deregistering until the sale. As I was not doing that option, I didn't find out the details.

One of the reasons, I got an accountant was due to this VAT issue. I registered for VAT, based on the advice of the financial adviser associated with the development. I did not look into the implications of being registered for VAT or seek independent advice. Only later, did I think I better check it all through with an accountant.
Personally, If I was to do it again, I would not register for VAT and would rather have borrowed the money from the bank.

 

[liteweight]

Would it have been a VAT clawback though?

If you don't deregister prior to the sale I would have thought you would end up having to charge VAT on the sale price plus you would get no consideration for the VAT already paid on rent?

Correct PLUS vat on new build is 13.5% while vat on re-sale is 21%. Imperative you de-register.