Value Added Tax, or VAT as it’s more commonly known, is a tax on the value added to a product or service. As a property purchaser, you have the option to tax a property or can elect to waive exemption of VAT on a property. Transactions that may involve selling or leasing of land are not always exempt, but if a business decides to charge VAT (opts to tax), this will change. The business will go from being exempt to charging VAT. This then means that the business can recover its VAT costs on construction.
So electing to waive exemption of VAT on commercial property will, mean that:
Should a landlord choose not to waive exemption of property VAT this will have the following consequences:
Once a property has been elected to waive exemption of VAT the property will remain elected for 20 years.
Please be aware that SDLT is applicable on the total purchase price + VAT of a property, and the VAT on SDLT cannot be reclaimed.
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"We’re delighted to have found a home at Seven Dials Warehouse and a commercial real estate framework that is fit-for-purpose, and one that gives us space to grow in the future. DeVono helped us realise our ambition of providing a sustainable and ‘appropriate’ home."
"I have worked with DeVono for many years. I value their approach – always looking at the big picture, not just the deal. They consider the real estate challenges we face through our eyes, understanding not just the real estate reporting requirements but also the complexity of our organisation’s structure and stakeholders. I’m always very happy to work with the team and value their support."
"Having appointed DeVono to find our next high profile London office, we have not been disappointed with their high level of service and meticulous attention to detail from the very first day, through to signing the Agreement for Lease and beyond. They assured us during the tender process that they would be right by our side all the way through and not just appointed to “do the deal” and this is exactly what we received."
"I was impressed by the service I received from DeVono when it came to finding new offices. They considerably reduced the stress, hassle and time that this process would have otherwise involved and we are chuffed with the end result."
"I must also comment that the service received from DeVono has been exemplary. In what I have experienced to be the unpleasant world of estate agency it has been a real joy to work with you. You have been driven, proactive, reliable and extremely quick and responsive. The fact that you are pleasant to work with has been a bonus. Working with DeVono has been one of the very best customer experiences of my business career."
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