The Practical Lawyer

Home
About
CPD
Subscribe
Contact
Tax – VAT

Conversion – residential

Conversion of non-residential space into residential space can be zero-rated (thus allowing the developer to reclaim VAT on expenditure, but not have to charge VAT on sale). Zero-rating applies to the first grant of a freehold or leasehold (over 21 years) interest on the conversion of a non-residential building or a non-residential part of a building into a dwelling or a number of dwellings. Two points to note:
Subscribers only...
 

Conversion – ‘non-residential’

The conversion of a ‘non-residential part of a building’ into residential use may well attract zero rating. But, there are conflicting decisions.
Subscribers only...
 

DIY scheme – planning condition

 A self-builder of a dwelling is entitled to a refund of any VAT. But, this only applies ‘if the separate use or disposal of the dwelling is not prohibited by the term of any covenant, statutory planning consent or similar provision’.

Subscribers only...
 

VAT groups – TOGCs

The general rule used to be that you ignore what happens inside a VAT group and pretend it does not happen. This explains why a letting to a group company inside the same VAT group was not enough to give you a transfer of a going concern (TOGC) and the advantages that flow from it.

Subscribers only...
 

Conversion – ‘non-residential’

The conversion of a ‘non-residential part of a building’ into residential use will usually attract zero rating. But, a recent case shows that it might not be so straightforward if the premises are mixed use.
Subscribers only...
 

Phased development – original building?

Building developments are often phased. When that happens, it is important to consider the VAT consequences of the phasing, because it may inadvertently lead to the loss of VAT zero-rating.

Subscribers only...
 

TOGC – ‘genuine’?

TOCG relief has recently been denied because the property structure set-up was not ‘genuine’.

Subscribers only...
 

Lease surrender – L’s premium

What is the VAT position if L pays T to surrender the lease? The answer is that no VAT will have to be paid by L – unless T has exercised the option to tax.

Subscribers only...
 

TOGC – lease surrender

HMRC has finally conceded that the surrender of a lease subject to a tenancy can constitute a TOGC (and so no VAT will have to paid). At the same time that will result in an SDLT saving for the L who accepts the surrender.

    
Subscribers only...
 

Overpaid VAT – interest

The High Court has held that HMRC should refund overpaid VAT with compound interest (not simple interest). This decision will inevitably be appealed to the CA because of the sums involved – it could cost HMRC many billions (Littlewoods alone is claiming £1bn on repayments going back many decades). Littlewoods v HMRC [2014] EWHC 868 (Ch)

 


Page 2 of 7

Most-read articles

Probate fees – increase delayed
Thursday, 09 May 2019
We reported in the April 2019 edition (p34) on the increase of probate fees which was due to come into effect in April 2019. Read more...
VAT Order – construction services
Thursday, 09 May 2019
The VAT (s55A) (Specified Services and Excepted Supplies) Order 2019 comes into effect in relation to supplies made on or after 1 October 2019. Read more...
Brexit – impact on solicitors
Thursday, 09 May 2019
The Law Society has issued guidance for solicitors on the impact of the postponement of the UK’s departure from the EU. Read more...
RTA claims – no lawyers
Thursday, 09 May 2019
The Gazette reports that the MoJ has issued a consultation as to how to create an IT platform to enable unrepresented litigants to progress their own claim. Read more...
CFAs – no automatic 100% success fee
Thursday, 09 May 2019
In RTA claims, may firms routinely set a 100% success fee and claim the maximum limit of 25% of total damages. Read more...
T’s failure to respond – not a refusal of access
Thursday, 09 May 2019
The UT has held that T’s failure to reply to a letter from L requesting access to the property did not amount to a refusal of access. Read more...
MEES non-domestic rentals – reminder
Thursday, 09 May 2019
The MEES regulations are designed to tackle the least energy efficient properties in England and Wales and the Regs establish a minimum standard of EPC band E for domestic and non-domestic private... Read more...
‘Highway’ – no single meaning
Thursday, 09 May 2019
The SC has recently clarified the meaning of a highway. Read more...
Procedure – divorce
Thursday, 09 May 2019
Divorce practitioners may be particularly interested in the background to a recent case setting out the administrative processes and procedures by which errors in divorce proceedings are picked up... Read more...
EU citizens – right to work checks
Thursday, 09 May 2019
The government has issued guidance on employing EU, EEA and Swiss citizens, and their family members, after Brexit. Read more...

Resources

IAG International
In House Lawyer
Join the IBA now!
www.totallylegal.com
MSI Global Alliance