VAT on rent for a livestock building?

[flowerpot]

There isn't any VAT on the rent paid for a building to be used for livestock and forage is there? Although it wouldn't make much difference, since the farmer could claim back the VAT if it was charged.

 

[Exfarmer]

There isn't any VAT on the rent paid for a building to be used for livestock and forage is there? Although it wouldn't make much difference, since the farmer could claim back the VAT if it was charged.

Be careful, normally rents do not carry VAT but if the building was constructed to rent out and VAT was reclaimed then I think VAT should be charged on the rent. I think also, if VAT was charged once then it should also be charged for the future.

 

[flowerpot]

Old buildings, about 40+ years old, but your point is a good one.

 

[chaffcutter]

Definitely, if the VAT was claimed on the building it should be charged on the rent, just had this confirmed by our accountant, had to do a form to ‘elect to tax’.

 

[d williams]

Old buildings, about 40+ years old, but your point is a good one.

Give your vat office a call explaining what your looking to do get reply in writing
Our accountant got it wrong
If supply a service with the building then yes
If just renting buildings then no
Be careful as if you do then vat should be added to sale of said buildings if sold as said not straight forward
Found the vat office very helpful and free compared to expensive accounts who gave wrong information

 

[Exfarmer]

If it is an older building and has been written off then I guess you could sell it to a separate non VAT registered company for a relatively small amount ( plus VAT) this company could then rent it out with out VAT.
However I would take serious asvice before doing so as there could be a range of issues tax wise there.
Also do not forget the rates angle, but a small company would not necessarily pay rates anyway.

 

[delilah]

Cash. Or straw, for eating.