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23 May 2017
Is VAT chargeable on land sold to a charity for charitable use?
A client has been renting out car parking spaces at his offices for the past five years and has charged 20% VAT on the fees. He has received an offer to sell the land to a charity that will construct a new building for its charitable activities. I have two questions.
- Should my client charge VAT on the land sale or will it be zero-rated if the charity issues a new building certificate? The charity is not VAT-registered so cannot claim input tax.
- If the land sale is zero-rated can my client claim input tax on related costs?
Readers’ help would be appreciated.
Query 18 979 – Parker.
Reply by Gardener
Parker needs to consider exactly what the various past and proposed transactions are and try to relate them to the categories in VATA 1994 Sch...
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