If you are VAT registered and you build a new house or flat and then let it out, you would not be able to re-claim any input VAT incurred on the actual building of the dwellings as letting is a VAT exempt activity.

If you were to sell the property instead, this would be a zero rated supply for VAT so you could re-claim the input VAT, however you would also trigger a tax charge on the profits made.

However, there is a relatively easy way to retain ownership of the property, let it out, and re-claim input VAT on the building costs whilst avoiding the tax charge of any profits by introducing the property into a Limited Liability Partnership and a little extra planning.

For further information on this issue or similar LLP/tax planning issues, please contact wes@a4gsolutions.co.uk.

With over 25 years of experience in leading high performing teams in the world of business Javelin offers a series of training programmes, such as:

Leadership and Motivation
Marketing and Sales  
• Networking and Cold Calling

The programmes deliver outstanding results and support businesses to get the best out of your people and future investors.

Also, as Javelin is a registered provider of training courses under the Train To Gain programme, funding may also be available to participants in the programmes subject to status.

If you are interested in any of the above sessions, please contact the Javelin team now on 01474 850154 or email Jenny Foster at Jenny.Foster@JavelinStrategies.co.uk to book as places are limited due to current demand.

“Making the vision clear sparks people’s passion and productivity”.

JACK WELCH