Avoid VAT and reduce SDLT on commercial property

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Avoid paying VAT and reduce SDLT on commercial buildings

In this video you will learn from Simon Misiewicz of Optimise Accountants “property tax specialists

▶ Why you need to read the small print when it comes to buying commercial property investments
▶ How VAT may be applied to certain property investments that you look to buy
▶ Why the increase of VAT on buildings opted to tax has a significant bearing on the amount of Stamp Duty Land Tax (SDLT) that you pay on the commercial property purchase
▶ Why the Transfer of Going Concern (TOGC) can help you save on both VAT and SDLT when buying a commercial building
▶ Why you can save both SDLT and VAT using the TOGC strategy when converting a commercial property into residential
▶ When you would use the forms 1614A and 1614D when applying and dis-applying VAT for opted to tax buildings

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Book a tax consultation with the co-owner of Optimise Accountants for £300 to discuss your property tax needs. Please ensure you use the coupon code “YouTube25” to get the 25% discount

The tax support will take the form of:

- You book the call and upload your questions with relevant documentation
- Simon will spend up to 60 minutes to go through your situation and identify the very best tax solution
- You and Simon will then spend the 60 minutes call to discuss which solution works for you best and to work out the practical application
- Simon will leave the call and spend up to another 60 minutes to write up the notes and to do further tax research
- Simon will provide an additional 15 minutes email support to deal with any clarification questions that you may have

[DaTestKa]

Very good explanation. Thanks.
Question. When you have commercial property with option to tax and after 3 years you move your own VAT registered business to that commercial property. What's needs to be done? As I see in the guidelines, No Connected party is to occupy/rent the opt to taxed property. And you only 6 months to change your mind?
What needs to be done?
Inform HMRC?
Pay the VAT back?
Will they be able to remove opt to tax or the property is stuck with it for 20 years?
Thanks

[mba]

Nice video. So you cover a scenario where a commercial property is purchased with a view to developing it into residential as well as a scenario of purchasing a company that owns a commercial property as a going concern. How about the scenario of just purchasing a commercial property with an existing commercial lease with the intention that it will remain commercial and let out to a 3rd party tenant? I don’t Think this was covered in the video unless I missed it 🙈 can we avoid paying the vat in the first place and negating the need to claim this back?

[claire]

Can you use TOGC on the flat rate scheme? Would the seller have to be on the flat rate scheme? Can you opt to pay VAT upfront and then go on flat rate - what are the implications? Thank you

[DavidTheDave]

Am I understanding correctly that SDLT is added to the VAT inclusive price meaning you are taxed on your tax?

[malhotra]

Hello - I am planning to buy under construction service apartment. It's in 20%-20%-60% payment plan. I am paying 20% now; Do i need to fill VAT1614A form now or in 2025 when construction completes?

[UK-Property-Tax-Accountants]

Have you used the Transfer of Going Conver (TOGC) strategy to minimise both Value Added Tax (VAT) and Stamp Duty Land Tax (SDLT) when it comes to buying a commercial (non-residential) building?