Land and PropertyVAT Services

VAT on land and property is one of the most complex areas of tax and, given the high value of many land and property transactions, the incorrect VAT treatment can be costly.

What is your VAT position for land and property?

Broadly speaking, land and property transactions are exempt from VAT. However, there are numerous exceptions which can result in supplies being standard rated, reduced rated, zero rated or exempt from VAT. This all depends on the nature of the property. For VAT purposes, subject to meeting certain criteria, a property transferred as a going concern may not be a supply at all.

In addition to the array of different VAT treatments encountered when buying and selling property, there are further different VAT rules which apply to the construction of new buildings and to the conversion, renovation, and repair of existing buildings.

It is crucially important to understand what is what with regards to land and property VAT.

VAT issues you may encounter

Unfortunately, when it comes to applying the correct VAT rate to land and property there is no ‘one-size-fits-all’ rule which can be applied. Every transaction must be considered on its own merit bearing in mind such issues as:

  • Is the property a new build?
  • Is the property commercial or residential?
  • Is there an option to tax in place?
  • Is the property being transferred as a going concern?
  • Is the property a Capital Goods Scheme item?

How Shorts can help

Understanding the VAT implications of a land and property transaction at an early stage can result in significant VAT savings.

VAT remains one of the least understood of all taxes, which is why we set up a specialist VAT advisory department, to help guide businesses through the complex maze of VAT legislation.

Our team help with all areas of VAT but have specific expertise in land and property transactions and in providing VAT advice to the construction industry. Whatever your VAT query involves, get in touch with our team of specialists today

Shorts has more expert tax advisers than any independent firm in our region. Whatever your VAT query, our team is here to help.

The Shorts VAT Team


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