VAT on Commercial Property which is purchased with the intension of Converting to Residential

george987

Hi,
My friend is planning to buy a commercial property to convert it to Residential.
His intension is to purchase it using a bridging loan and then apply for planning permission as the seller wants the sale to be completed soon.

The seller has opted for VAT, but my friend is buying to convert to residential, so he will  not have to pay VAT ( he has to complete a form before the sale is completed).

After purchasing the property, if he does NOT get Planning Permission to convert it to residential, then his next option is to apply for a Change of Use to use to convert it to a shop. It is not a shop now. 

If the planning permission is refused to convert the building to residential then will he need to pay VAT to HMRC? By then he may have already completed the purchase of the property, because the seller wants the sale to be completed as soon as possible and he is not prepared to wait for the planning to be approved.

Thanks,

Grumpy_chap

Does this thread help?
https://forums.moneysavingexpert.com/discussion/6336322/avoiding-vat-when-buying-pub-for-residential-purpose

Complex cases such as this really need professional advisors in place, not the advice of internet forums where, of necessity, not all details can be shared and the danger then is incorrect comments even though well-intentioned.