Buying & Renovating Property

Axel

Hi,

I have recently retired from a senior management position in a construction company. My wife and I have just bought an old property with the itention of renovating and selling it. We are looking to do two or three properties a year for the next few years.

I think we should probably set up a company and get VAT registered so that we can reclaim our VAT on marterials purchased and enhance our return.

What is the best way to do this, partnership, limited company? We intend using our own savings to finance the properties and not go into debt. Also has anyone had experience with any of the online services for setting up a company or should we just go and see a local accountant?

Any other comments on the pros and cons of the above would be appreciated.

Axel

Cautious_Investor_3

Hi

I might be wrong but if the business has no vatable income you will not be able to reclaim any VAT on purchases.

As I say, I could be wrong.

The Cautious Investor

Thrugelmir

Axel wrote: »

I think we should probably set up a company and get VAT registered so that we can reclaim our VAT on marterials purchased and enhance our return.

Suggest you seek professional advice before embarking on a costly misadventure.

VAT cannot be reclaimed on the renovation of property. Unless you make non exempt supplies, i.e. sell inclusive of VAT.