VAT on barn conversion?

[Smith31]

We have a brick built agricultural building near an entrance point to a field. The building is too small for modern machinery and is a prime candidate for residential conversion. We would sell the building once the planning approval notice is issued, we have no intention of starting building works.

The farm is VAT registered and VAT has been reclaimed on any repairs done to the building in the past, if sold as a residential dwelling conversion, would we have to charge VAT on the sale price? TIA.

 

[Kidds]

We didn't on any we sold under the same circumstances. I think if the land itself is VAT registered rather than the business is where the difference would be. (probably not the correct terminology)

 

[chaffcutter]

No, unless you have taken an ‘Option to tax’ on it or the land it sits on, which is very unlikely unless you anticipate selling land for development where you want to be able to claim back the VAT on all the expenses of the agents etc involved in the sale, which you would otherwise be unable to do using your farm VAT account because selling land is not part of your’ trade’.
Hope you follow that!

 

[Smith31]

No, unless you have taken an ‘Option to tax’ on it or the land it sits on, which is very unlikely unless you anticipate selling land for development where you want to be able to claim back the VAT on all the expenses of the agents etc involved in the sale, which you would otherwise be unable to do using your farm VAT account because selling land is not part of your’ trade’.
Hope you follow that!

Thank you, much appreciated.

 

[Smith31]

We didn't on any we sold under the same circumstances. I think if the land itself is VAT registered rather than the business is where the difference would be. (probably not the correct terminology)

Thank you, much appreciated.

 

[George from SJM Planning]

I would be very interested in assisting with obtaining the planning for you. We have experience in Class Q barn conversions.

 

[Smith31]

I would be very interested in assisting with obtaining the planning for you. We have experience in Class Q barn conversions.

Thank you for the offer, will keep you in mind, we are still debating whether to go ahead with the actual planning application, it's partly dependant on other family members agreeing, as the land is jointly owned.