Taxes on Land, Property and Construction

Land and property projects and transactions are high value and inevitably high risk from a VAT point of view. This area of VAT is complex. Errors are easy to make, often impossible to correct, and can lead to unanticipated costs and penalties.

This course provides a full explanation of all the VAT rules for commercial, charity and residential construction, refurbishment and supply, as well as common supplies between landlords and tenants. It will equip the delegate to plan projects VAT effectively, and avoid VAT traps. A good basic knowledge of VAT is assumed.

CONTENT

Construction

• New commercial buildings, residential, relevant residential and charitable buildings
• VAT traps that prevent zero rating
• Changes to statutory planning consents
• Mixed developments and how to apportion
• Building materials and fixtures- incorporated or blocked?
• Building contracts, tax points and payments
• Anti-avoidance measures

Conversions and refurbishment

• Zero-rated conversions
• The VAT rate for refurbishments and changes to the number of dwellings

Land and property supplies

• Sales and leases of new commercial, residential, relevant residential and relevant charitable buildings
• Licences to occupy land
• Exclusions from exemption
• Inadvertent exempt supplies and input tax apportionment

The VAT option to tax

• The benefits, what an option to tax covers, and how to avoid mistakes
• Automatic and permission options
• Disapplication of the option to tax, the effect on VAT recovery, and anti-avoidance measures

Supplies between landlords and tenants

• Rent free periods, dilapidations, reverse premiums, assignments and inducements

The VAT capital goods scheme

• What it covers and how it works

Transfers of a going concern

• VAT free treatment for certain land and property transactions

VAT planning

• Schemes that must be notified to HMRC
• The impact of the Halifax decision

TRAINING METHODOLOGY

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.