VAT Flashcards
Selling (non-res!) property with tenant in situ?
Counts as TOGC! So no VAT unless OTT & not continued
Is business use VATable?
NO
Is renting VATable
YES! ‘making exempt supplies’
What makes a VAT group?
“50% CONTROL
(Then no VAT on inter-group transfers)
(Even if not in NGNL group)”
Can you reclaim input VAT in full if have rental business but OTT?
“YES
‘The original input VAT at the time of acquisition would have been reclaimed in full as the option to tax (OTT) converted the rental business from an exempt into a taxable supply.’”
Does OTT remain if you transfer in a VAT group?
YES, you can’t change it
Is it taxable if an OTT building is transferred outside a VAT group?
“YES, it is taxable because you have OTTed
The OTT is then not transferred (the buyer can pick)”
Selling an old building terminology?
‘Exempt supply’
What can you say if something is a taxable supply?
‘If it is a taxable supply then the potential recovery of input VAT will affect the price negotiations, so this should be borne in mind.’
Groups but not explicitly VAT group or not?
Question might be wanting me to consider the different implications of being in a VAT group or not
What do you have to do for VAT if the taxable use changes in the year?
Have to PRO RATE it
Buy building then OTT (and some exempt & not renting building…)?
How much is reclaimed?
“Still only get the proportion before OTT immediately reclaimed
Rest could be reclaimed through CGS”
How to find out the VAT paid on a newly constructed building when have the gross amount?
Would have been INCLUSIVE of VAT, so the VAT would be X (0.2/1.2)
Capital loss before joining a group?
Watch out for pre-entry capital losses!
What to remember with indexation?
Indexation is to TWO DECIMAL PLACES
