Reclaiming VAT on purchase of new investment property?

  • Thread starter poundmasters
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poundmasters

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Hi all,
I am a self-employed/VAT reg Trading Professional, my wife is PAYE. We have just put a booking deposit on a new build house, to be rented when completed.
My plan was to register my wife for VAT now,and reclaim the 13.5% back as a lump sum. Then to charge/incorporate VAT into the rental payments each month.In doing this avoiding income tax on this VAT repayment.I will then unregister in so many years after full repayment, but hopefully have put the lump sum to good use.

Q. Is there anything I am missing,and can my wife do this totally legally as a PAYE?
I am correct about reducing my income tax liability?
 
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