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In the countdown to the possible revocation of elections next year, NEIL WARREN considers the main VAT changes in the new option to tax regulations
KEY POINTS
- The basic principles of the option to tax
- When can the option to tax be revoked?
- The 'cooling-off' period
- The revocation procedures required
- Changes of use and relevant intermediaries
Twenty years is a long time to wait for anything. But in just 14 months time some option to tax property elections made by individual taxpayers when the regulations were introduced in 1989 (when Lady T was still running the country) can be revoked for the first time.
This means that income generated by certain non-residential properties (mainly rental income or from the sale of the building) will again be exempt from VAT instead of standard rated.
To their credit HMRC are ahead of the game and are amending the option to tax legislation (VATA 1994 Sch 10)...
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