Buying commercial property

[Booboo691]

Good morning
A retail property I want to buy has just become available.
Quick question if I may, the price is plus vat. If I buy this month I need to pay all the vat, so will I get it all back when I submit our next vat return?

Also, can anyone give a rough idea the legal fees would be for a £150,000 purchase?

 

[pentel]

Yes you will get your VAT paid on the next return. Be aware that this can take up to 30 days from the date that you submit your VAT return so submit the return as soon as possible.

You may get a visit or a call from HMRC to check why there has been a big deviation from your usual return.

 

[Bobbo]

A retail property I want to buy has just become available.
Quick question if I may, the price is plus vat. If I buy this month I need to pay all the vat, so will I get it all back when I submit our next vat return?

What do you intend to do with the property?

 

[Booboo691]

What do you intend to do with the property?

Use it instead of the one we are renting.

 

[UK Contractor Accountant]

Quick question if I may, the price is plus vat. If I buy this month I need to pay all the vat, so will I get it all back when I submit our next vat return?

Have you notified HMRC of the Option to Tax the property?

 

[Bobbo]

Have you notified HMRC of the Option to Tax the property?

Why would they need to opt to tax it?

 

[Bobbo]

Use it instead of the one we are renting.

And your business' supplies are fully VATable? Nothing exempt?

 

[UK Contractor Accountant]

Why would they need to opt to tax it?

so they can claim the VAT back!

 

[Bobbo]

so they can claim the VAT back!

Whilst not explicitly stated, the implication of comment #4 from OP is that they would use the property as their business premises.

Assuming they confirm all supplies made by the business are VATable, why do you think they need to opt to tax the property to claim the VAT?

 

[UK Contractor Accountant]

yes correct - assuming all supplies are vatable no need to OTT but in my experience once the new owner gets their hands on the property they start to refurbish the property or sublet part of the property and don't realise they cant claim the vat back on these costs unless they have opted to tax the building.

 

[Gettingthereslowly]

Legal fees wise: I'd budget £2-3k......er.....plus VAT

Ask for quotes from a few solicitors......go local, they know the areas/any issues better than a cheper online conveyancing factory type outfit.

 

[WaveJumper]

Personally I would use a solicitor versed in commercial property transactions would be my advice, have you arranged to have the property surveyed

 

[Lisa Thomas]

I can recommend a commercial conveyancer and an accountant if you don't find one on here. Feel free to dm me.

 

[PaulThompson]

If you're using a mortgage for the purchase then your lender might have restrictions on the conveyancer firm you use (min. 2 SRA reg. solicitors is typical).
If you have to, you can bridge the VAT element of the purchase price (but it's not cheap)
Let me know if you need any funding advice at all..