Deepaman Prabhakar
Joined: 6/14/2024
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Claiming VAT on the purchase of a commercial property
If my company acquire a commercial property (not qualified for TOGC) at a cost of £100,000+20% VAT and register for opt to tax. Then lease/rent at £1,000+20% VAT per month. Keep it simple by assuming a lump sum expenditure for the frist quarter of operation £10,000+20% VAT Property Rental Income - Output VAT £600 Property Purchase -- Input VAT £20,000 Expenditure - Input VAT £2000 Can we recover the Input VAT balance of £17,400 after the first quarter of operation from HMRC by submitting a normal VAT return ?