Question:
I am looking at purchasing a shop through my limited company (VAT
registered). If I did this, could I claim back the VAT back on buying the shop? The price currently says £Xk + VAT. Also, if used the shop below for my business but I then rented out the flat above the shop, would I have to charge VAT to the tenants... thus either making the rent higher or being in a position where I lose 15% (soon 17.5%) of the rent to tax from the out-set?
Arthur Weller Replies:
Yes you can claim back the VAT on buying the shop. Since the flat above the shop is residential, there can be no VAT on it. So any VAT you are charged will only be for the shop part, on the ground floor. You cannot charge VAT to the tenants of the flat, because, again, there can be no VAT on residential property.
