Commercial Property Refurb

As the leaseholder can I recover the VAT on a commercial property refurb if the landlord has not opted to tax?

Hi.

If the landlord has not Opted To Tax then the landlord will not charge you VAT on the lease and they would be unable to recover VAT as input tax on work carried out to the building.
If you incur VAT then please see the conditions for your business to treat this as input tax:

VAT guide (VAT Notice 700) Section 10

Opting to tax land and buildings (VAT Notice 742A)

Thank you

So without an option to tax neither the landlord or leaseholder can recover input tax on the refurb costs?

Hi Dan Rhodes,
The main condition for treating VAT as input tax is that the VAT incurred is in the course of the business and is in relation to the making of taxable supplies.
An option to tax on a property results in taxable supplies being made in connection with the property and so would then allow VAT on purchases to be treated as input tax.
However if you as the tenant are using the property as an office for example from which you are running your business and making taxable supplies then you can recover VAT as input tax in relation to the property.
Please see condions again for the recover of input tax:
10. Introduction to input tax
Thank you.