VAT on property is one of the most challenging areas of the VAT Practitioners work. The stakes are high and the areas of risk are many and varied. In this post, therefore, we address some of the key VAT issues likely to be faced by investors who own residential buy-to-let portfolios.
With the UK standard rate of VAT now 20% (1/6th of gross value), it has never been more important to, or more expensive to fail to, meet the obligation of compliance with the VAT regime as the penalty regime for errors (even where these are completely innocent mistakes) can also be highly punitive. Where possible, if you are able to plan ahead on ways to mitigate unnecessary VAT costs then so much the better and as always the best advice has to be “plan ahead and get it right first time”.