I am looking at buying a small industrial estate where the total rental is currently over £100,000 per annum. The purchase will not be with VAT. If I do this with a company, do I have to register for VAT as the revenue exceeds £85,000? Some of the tenants are not VAT registered, so they would either pay more or I would have to charge less. 

Arthur Weller replies:  

From what you have written, that your purchase will not be with VAT, it appears that the seller has not opted to VAT. If so, you are under no obligation, nor do you have any necessity, to register for VAT and opt to VAT. You can rent out to the tenants without charging VAT, even if your turnover exceeds £85,000. However, you will not be able to reclaim VAT on your inputs (see VAT 742A section 1.2).