Zero VAT on property transfers


Zero VAT on property transfers

VAT on investment property transfers is a complex area to navigate. In this article, Shipleys VAT team have put together a helpful summary.

The VAT-efficient transfer of investment properties, whether a single tenanted building or a property portfolio, can be complex and involved.

Transfer of a going concern

If structured correctly, an arrangement known as a transfer of a going concern (TOGC) can exclude VAT from the selling and purchase price and reduce stamp duty land tax liabilities.

Every situation is unique, but the most relevant qualifying TOGC conditions are:

TOGC is a complex area so talking to a VAT specialist with TOGC experience will help you ensure that all conditions are met.

Contact the Shipleys VAT team at vat@shipleys.com or by calling one of the Shipleys offices.

Specific advice should be obtained before taking action, or refraining from taking action, in relation to this summary. If you would like advice or further information, please speak to your usual Shipleys contact.

Copyright © Shipleys LLP 2022

Current Issues

Financial Services Update – January 2023

In this issue we cover the latest compliance and policy developments for the sector, plus the implications of fresh FCA guidance.

Changes to Option to Tax Arrangements from 1 February 2023

The Government has announced changes to the rules for the notification of an option to tax land and buildings. This relates to the VAT treatment of commercial property.

New VAT penalty and interest regime could be more expensive for some businesses

The new VAT penalty and interest regime came into force on 1st January 2023.