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Vat on a semi commercial property
Vhlis132
Posts: 1 Newbie
Sorry I'm new here and wasn't sure what section to put my querie in.
I don't know if anyone can help me but I can't seem to get a clear answer.
I'm interested in purchasing a Pub, the sellers have opted in to tax the property, now as the pub has a 'flat' upstairs we would be living in, it would be classed as a semi commercial property, now as far as I can see the vat would be added on the entirety of the property sale, this bringing the property up to £600,000 plus stamp duty which is also added on the entirety, paying tax on tax, can you believe it!!!
Anyway is anyone able to give me a definitive answer as whether 1. The VAT would in fact be due on the entirety of the property purchase or would they portion a percentage of it as part of residential and therefore not subject to vat!??
2. What percentage of VAT could you claim back?
I hope this makes sense my head is spinning, trying to work it all out!!
I don't know if anyone can help me but I can't seem to get a clear answer.
I'm interested in purchasing a Pub, the sellers have opted in to tax the property, now as the pub has a 'flat' upstairs we would be living in, it would be classed as a semi commercial property, now as far as I can see the vat would be added on the entirety of the property sale, this bringing the property up to £600,000 plus stamp duty which is also added on the entirety, paying tax on tax, can you believe it!!!
Anyway is anyone able to give me a definitive answer as whether 1. The VAT would in fact be due on the entirety of the property purchase or would they portion a percentage of it as part of residential and therefore not subject to vat!??
2. What percentage of VAT could you claim back?
I hope this makes sense my head is spinning, trying to work it all out!!
0
Comments
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It's more complex than that.
Ask your Accountant. If you have not got one, get one first.
Don't make a 5 figure mistake based on advice from here.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I am assuming at £600k its a freehold with no pub co tied to it?
I definitely agree with AMN, get an accountant. Having owned a pub in the past, you are going to need one at some point so best to get one you can rely on upfront before you get the ball rolling.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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