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The recovery of input tax in respect of buy-to-let residential property is considered by NEIL WARREN
KEY POINTS
- The input tax block on exempt supplies.
- Partial exemption de minimis tests claims and calculations.
- Joint owners of land or buildings are treated as partners.
- The flat rate scheme implications.
- Note that holiday lettings are a taxable supply for VAT.
One of the challenges of being a VAT writer is to highlight opportunities to readers where savings can be made that are not obvious when you follow the basic principles of the tax.
So here goes with today’s challenge: a client called Harry has bought a house in London that he intends to renovate by using the services of a builder with total costs of £60 000 plus VAT and then rent it out on a buy-to-let basis.
His question: can he reclaim the £12 000...
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