Limited company to pay VAT when sell property?

Landlord Discussion Property Investment
1

Hi,

6 years ago I started a limited company to buy a house for 220k,
I spent 200k converting this into 3 flats.
I recently sold one of these flats for 144k.
I divided purchase cost into 3 and with development costs made a loss of 3 k.

My accountant has suggested that I need to register for VAT because this transaction has put me over the £85,000 threshold. She also informs me that I will have to pay VAT on the total turnover. As I did not charge the seller VAT I’m surprised she has requested this?

Does this make sense to anyone?

Thanks

Joe

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2

Get a second opinion from one of the landlord tax specialists that advertise.

4

Thanks David, are there landlord tax specialists that advertise on this website or were you thinking of another site? Appreciate your reply/advice

Joe

5

You could try Rita4Rent. They used to be the NRLA tax partner.

6

Thanks David-I appreciate you taking the time to reply. Best wishes

7

Sounds like you might need a new accountant! Unless there’s something odd in your situation, you don’t pay VAT on the sale of residential property. Commercial property may be VATable depending on circumstances.

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