VAT and Property
VAT and Property
Guidance on the application of VAT to UK property transactions and the property sector
This book offers clear and practical guidance on the application of VAT to property transactions providing assistance to individuals, property businesses and professionals. It covers guidance on VAT and property issues including: residential, commercial, charitable and mixed-use property, housing associations, protected buildings, and caravans. VAT refund schemes, the capital goods scheme and TOGC issues are also covered.
Includes detailed HMRC guidance and forms on CD-ROM
This book offers clear and practical guidance on the application of VAT to property transactions providing assistance to individuals, property businesses and professionals. It covers guidance on VAT and property issues including:
- Introduction to VAT concepts: VAT terminology, Legislation, Definitions.
- Land Transactions
- Residential property: New build, Extension and refurbishment, Renovations and alterations, Conversions, Facilities for the disabled, Transactions between landlord and tenant, DIY house builders, Caravans and houseboats, Listed/protected buildings.
- Residential and charitable use buildings, Housing Associations, Cultural bodies
- Commercial property: Construction industry, the election to waive exemption, Supplies not affected, Making an election, Revoking an election, Input tax claims, Avoidance rules, Premiums, surrenders and inducements, Specialist services, Transfer of a business as a going concern
- Anti-avoidance legislation
- Guarantees, Partial exemption, Input tax recovery, the capital items scheme.
Includes detailed HMRC guidance and forms on CD-ROM
Also by Ann Humphrey:
‘Buying or selling a boat and all at sea?’ by Ann Humphrey. Price £35 and all the proceeds from the sale of the eBook will go to My Place, a Hong Kong based charity that helps to transform the lives of the most disadvantaged and at-risk children in various parts of Asia.
http://www.annlhumphrey.com/downloads/buying-or-selling-a-boat-and-all-at-sea/
Ann L Humphrey is a solicitor with an independent tax practice. She is also the author of Stamp Duty Land Tax: a practical guide for lawyers published by Spiramus Press.
1 Introduction
1.1....... Overview of the UK VAT rules for property transactions and the property sector
1.2....... Definitions
2 The General VAT Rules as they apply to Property-Related Supplies
2.1....... Goods or services?
2.2....... Time of supply
2.3....... The value of the supply (the amount on which VAT is chargeable)
2.4....... Supplies spanning change of VAT rate or change in liability of a supply
3 The VAT Liability of the Most Common Property-Related Supplies
3.1....... Exempt or taxable at the standard rate?
3.2....... Treatment of the most common supplies of land and buildings
3.3....... Supplies of and under leases
3.4....... Commonhold
3.5....... Joint ownership
3.6....... Beneficial interests
4 VAT Reliefs for Supplies of Dwellings
4.1....... Meaning of ‘dwelling’
4.2....... Case law on meaning of ‘dwelling’
4.3....... Zero-rating for new dwellings – the details of the relief
4.4....... VAT reliefs for conversions into dwellings
5 VAT Refund Schemes
5.1....... DIY builders scheme ‒ introduction
5.2....... Details of the DIY builder’s refund scheme
5.3....... Amounts qualifying for refund
5.4....... The form of claims by DIY builders
6 Buildings used for a Relevant Residential or Relevant Charitable Purpose
6.1....... Introduction
6.2....... Use solely for a relevant residential purpose
6.3....... Use solely for a relevant charitable purpose
6.4....... Certificates
6.5....... Claw-back on change of use
7 Property Transactions Involving Housing Associations – the Special Rules
7.1....... Zero-rating of conversions
7.2....... Claw-back on change of use
7.3....... Disapplication of the option to tax
8 Reliefs for Protected Buildings
8.1....... Introduction
8.2....... Zero-rating for substantially reconstructed protected buildings from 1 October 2012
9 Supplies of Commercial Property and the Option to Tax
9.1....... Introduction to the option to tax
9.2....... Overview of the main points about the option to tax
9.3....... The UK legislation relating to the option to tax
9.4....... Effect of the option to tax
9.5....... Scope of the option to tax
9.6....... Opting to tax – the two-stage process
9.7....... Day from which the option takes effect
9.8....... Duration of option to tax
9.9....... Revocation of the option to tax
9.10..... Real estate elections
9.11..... Cases where HMRC’s permission is required before exercising the option
9.12..... Exclusions from the effect of the option to tax
9.13..... The option to tax and VAT groups
9.14..... Option to tax: anti-avoidance provisions
9.15..... Effect of the option to tax on input tax recovery
9.16..... Timing of the exercise of the option to tax – some practical points
10 Supplies in the Building Industry
10.1..... Introduction
10.2..... Table outlining reliefs
10.3..... Zero-rating of the construction of certain buildings
10.4..... Zero-rating of certain goods and services supplied to a disabled person
10.5..... Reduced rate for qualifying conversions
10.6..... Reduced rate for certain residential renovations and alterations
10.7..... Relief for building materials etc.
10.8..... Self-supply of construction, alteration and demolition services
10.9..... Time of supply of building services
10.10.... Self-billing and authenticated receipts
10.11.... Summary of VAT liability of supplies of building services
11 Partial Exemption and the Capital Goods Scheme
11.1..... Effect of being partially exempt
11.2..... Methods of apportionment
11.3..... De minimis limits
11.4..... Capital goods scheme
12 Transfer of a Business as a Going Concern (‘TOGC’)
12.1..... The legal framework for TOGC treatment
12.2..... The general conditions for TOGC treatment
12.3..... TOGCs: Some drafting points
12.4..... General condition (1): business assets transferred as part of a going concern
12.5..... General condition (2): assets to be used by the transferee in carrying on the same kind of business
12.6..... General condition (3): transferee must be a ‘taxable person’ or, as a result of the TOGC, become a taxable person
12.7..... General condition (4) Transfer of part of a business capable of separate operation
12.8..... Additional conditions for certain property assets to be included in a TOGC
12.9..... Property letting and TOGCs
12.10.... TOGCs and transfers to nominees
12.11.... TOGCs: summary of main VAT consequences
13 Property Supplies relating to Caravans and Caravan Parks
13.1..... Caravan park works
13.2..... Caravan pitches
13.3..... Caravan rental
HMRC Forms and Guidance
Revenue & Customs Briefs
VAT Forms
VAT Information Sheets
VAT Notices
INDEX
CD-ROM: HMRC forms and guidance