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VAT & Property

If you work in the property sector, whether as a developer, or as an accountant or solicitor advising clients who are developing or managing properties, you will know how complex and stressful the VAT rules in this area can be.

Even highly-experienced and successful professionals can find themselves in difficulties when confronted by unexpected or confusing VAT issues.

We can help you find a way through the confusion to a practical, cost-effective solution. Our knowledge of the law means we can look at your case from many different angles. Our experience in dealing with HMRC bureaucracy means we can move your case forward as quickly as possible.

Property and construction is complicated and risky enough as it is. Why not remove the VAT issues from the equation?

How Can We Help?

In the Property and Construction sector, everyone knows that new houses are zero-rated. This is a very valuable relief, giving the builder all upside and no downside with regard to VAT.

However, HMRC don’t give with both hands. The rules covering the reliefs are strict and even normal commercial arrangements – such as site fine, or similar financing structures – can run aground on the trickier parts of the rules.

To make sure everything goes smoothly, we can help you:

  • Structure your projects to avail of the maximum reliefs, while ensuring you are within HMRC guidelines
  • Increase your input VAT recovery
  • Reduce the real cost of VAT to your business
  • Handle special projects such as work for housing associations and student accommodation properly, to ensure you get the reliefs you are due
  • Ensure that redevelopments of older properties can qualify for zero-rating

We can also assist you with VAT DIY Builder claims for self-build projects.

Prevention is always better than cure, so if you are thinking of getting involved in a new-build residential project of some kind, or a large redevelopment or refurbishment, give us a call to make sure you are getting the VAT right and keeping your costs down.

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The generous zero-rating reliefs which apply to many residential projects do not apply to commercial developments. This means that VAT at 20% is chargeable on your costs and also that your end customer will need to find an additional 20% of the build cost to pay HMRC the VAT on the final project.

The VAT rules state that, unless action is taken, renting out commercial properties does not permit VAT recovery on the costs of building or even of maintenance and repairs.

This can be hugely expensive for large new-build commercial projects and can leave developers with significant additional expense. We can help you improve your return on your investment.

We can guide you through the complex rules, avoiding the bear-traps for the unwary, and can help you to:

  • Recover all or most of your input VAT, thus giving you a better commercial outcome
  • Improve your cashflow
  • Reduce the VAT cost to the end customer, for example a care home operator
  • Transfer commercial developments without giving rise to a VAT charge – completely legitimately
  • Liaise with HMRC – for your benefit – without stress or worry
  • Arrange for belated notifications of options to tax

Our aim is to give the best overall, practical outcome for you. We will not take you on a wild goose chase, seeking dubious tax avoidance tricks which could create issues for you with HMRC in the long-term.

We will use our knowledge of the rules and of how HMRC operate to make sure you get a practical and robust solution which leaves you better off. Give us a call now to find out how we can help you.

Make an Enquiry

Like residential property, it is well-known that there are generous reliefs for charities which are carrying out building work.

Again, however, the rules are extremely strict, and just because you or your customer are a charity does not automatically mean you do not have to pay VAT.

For churches, schools and many other charitable bodies, reliefs are available. However, they can only be obtained if all the parts of the project meet the rules. Given how tight money can be for charities, this makes VAT a crucial issue. It can often be “make or break” for a particular project.

With this in mind, we can help you:

  • Check that your planned project can avail of the reliefs
  • Help you plan the project out so that it will be able to obtain the reliefs
  • Advise on any concerns or worries you may have about HMRC’s attitude
  • Help you to avoid the serious penalties – up to 100% of the VAT cost, plus the cost of the VAT – which HMRC will levy if the rules are not properly followed

A significant additional benefit of improving the VAT position can be that it makes it easier to persuade banks or other third-party financiers to support valuable projects for the benefit of your community.

Give us a call now to find out how we can help you make your project a reality.

Make an Enquiry

Explore Our Other Services

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VAT Visits & HMRC Enquiries

We have a great deal of experience in handling HMRC, from routine VAT visits to dawn raid enquiries and accusations of fraud.

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Cross-Border VAT Services

Our experience, care and attention means we can assist with all areas of cross-border VAT, including supplies of goods and/or services.

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VAT Advice & Support

Helping you find the best solution to any all VAT issues for your client, allowing you to focus on delivering valuable business advice.

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Claim Your Free Enquiry Now!

For your free, no obligation consultation, please contact us using either our online enquiry form or details provided below.

028 71 876 220