I am intrigued by your post, I asked about this process in the "Tax" Forum last week, would be interested to hear from anyone who has succesfully completed this process on a DIY basis. Thanks.
How will this affect those already registered for VAT. For example if they buy another investment property do they have to charge VAT on the rental just because they're registered. Another minefield coming up methinks!
I dont see the minefield....
When you register your have to waive your exemption not to charge VAT on short term rental income. Therefore VAT has to be returned on all REnt received. Even before the amove to close off the loop properties that you did not capitalise (get refund of VAT on ) had to have VAT returned on the Rent.
If you wish to get out -or sell the capitalised properties before the VAT Rebate is repaid in VAT returns, you just pay back balance outstanding and then sell the property in the normal way, withut having to return VAT from the sale price.
Ubiquitous I ... would be interested to hear from anyone who has succesfully completed this process on a DIY basis.
It can also cause problems and large tax bills should you decide to sell the house at a later stage.
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