New Build Taxation VAT

[elliop]

A close friend has just finished building two new properties for resale and has been advised by his solicitor that he must pay vat on the full selling price. This doesnt sound right can anyone help with advice or point me in the right direction . Thanks in advance for any help I recieve, will try to repay the favour.

 

[hjrdee]

Did he claim Vat back on the build costs?

 

[elliop]

not yet but i think he plans too, if he draws up a contract to sell the land and one to sell the property will it bring down the vat bill?

 

[ubiquitous]

he has been advised by his solicitor that he must pay vat on the full selling price. This doesnt sound right

Why?

 

[elliop]

From what I can gather he has imported the building materials into his VAT number from Northern Ireland, he has this part covered. He doesnt mind paying the Vat on the sale but not on the full sales price, surely he shouldnt have to pay Vat on the sale of the land.

 

[ubiquitous]

surely he shouldnt have to pay Vat on the sale of the land.

Well the law of the land says that he does.

He needs professional accountancy/tax advice.