Common questions within the property sector that are often left with confusing answers usually surround VAT. The rules surrounding it are that if your total VAT taxable turnover for the last 12 months was over £85,000, you must register.
However, these rules do not apply for residential property.
If you buy a new residential property, it will be zero-rated for VAT purposes. Income from letting residential property is exempt – except for furnished holiday lettings which allow the same VAT treatment as hotel accommodation. Rent from commercial properties is exempt unless they provide a service or you decide to opt to tax.
The world of Property is a difficult one to master, even more so in the current state of the world. Knowing what mistakes to avoid and what advice to follow can be challenging – so we have made it simple: