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Question Title: VAT
| Question: 69 |
| I run a property management business. Our fee income or business turnover is now over the current VAT registration threshold but when I approached the VAT office, they say that I do not have to register because residential property is exempt.
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| Answer: |
| There is clearly some confusion here. Rents on most forms of residential property are currently exempt for purposes of VAT (except for holiday lettings where strictly speaking, the rents are subject to VAT). However, your management fees and other professional fees are subject to VAT as with any other service business. There is a compulsory requirement to register for VAT if your fee income exceeds the threshold. Below this, the individual or business may register voluntarily.
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References:
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Pages:
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Hyperlinks:
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Letting Update Journal |
Jul 2003 page 19 |
letting-update-journal.html
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Letting Handbook |
Chapter 14 |
letting-handbook-and-factsheets.html
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For more information, discuss on the Forum
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