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In November 2014 a client – a property developer company – bought a plot of land for £300 000 plus VAT with the intention of building a warehouse to rent out to a storage company.
The company opted to tax the land and claimed input tax on the purchase price and legal fees on its December 2014 return.
However the project never materialised and the company sold the land at a loss for £240 000 in January 2021 to a housing association. No VAT was charged because the association gave my client form VAT1614G before the sale.
My client repaid 20% of the input tax on his March 2021 VAT return on the basis that the land was sold at a 20% loss ie the box 4 input tax figure was reduced by £12 000. He said the repayment is necessary because of...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
