.png)
.png)
09 November 2021
VAT on land dilemma following fire.
One of my clients owned a commercial building which he rented out to a local business that traded as a sauna and health spa. He opted to tax the building in 2007 and has always charged VAT on the rent to the tenant.
Following a fire last year the building was totally ruined and the site is now just bare land. Having now received his insurance pay-out my client is considering one of two options:
- sell the land to a local speculator who can then choose to use it as they wish; or
- obtain planning permission to build a ground floor shop with two floors of flats above the shop – he intends to sell the flats on a 250-year lease and rent out the shop to generate income.
Is the option to tax election from 2007 now irrelevant following the demise of the previous...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
