Avoiding VAT when buying Pub for Residential Purpose

george987

Hi,
I am buying a Pub to convert it to flats.
The ground floor of the building is the pub and first floor is already a residential flat.
The entire building is for sale.

The flat (first floor) and the pub (ground floor) are on the same title on land registry though they pay separate council tax.

The entire building is owned by a big pub chain company and they are selling it.
The buyer is supposed to pay VAT on top of the purchase price.

But, I heard if the property is purchased for residential purpose you can avoid VAT.

I am buying it with my wife and our aim is to convert the pub area (ground floor) also to one or two flats (need planning permission).
If I purchase, will I be able to avoid VAT? Is there any form which we need to submit to HMRC to avoid VAT?
Thanks

Keep_pedalling

Only if you buy it as a going concern and keep the pub running. I think I would be looking elsewhere for an opportunity.

Sibbers123

https://www.gov.uk/government/publications/vat-certificate-to-disapply-the-option-to-tax-buildings-for-conversion-into-dwellings-etc-vat1614d

VAT1614D may help. 

If the option to tax is over 20 years old then they can revoke the option before sale.

VAT on land and buildings is very complex so best to get professional advice.