Readers’ forum: VAT issues of selling farmland to a developer

I act for a client who has received planning permission from the local authority to build houses on a few acres of his land which is currently used by a tenant to trade as a farm. The tenant pays my client monthly rental income for the site and no VAT is charged by my client on the rent.

My client’s plan is to opt to tax the site and sell the land to a developer charging VAT on the proceeds. Having only ever rented it out and not claimed back on any costs I believe we don’t need permission from HMRC to opt to tax. Is this correct?

I have two further VAT questions. The development land is obviously clearly identifiable. Are we able just to opt to tax this parcel of land rather than the whole site? I have a recollection that you had to register...