VAT Reg

X-No-Archive: yes In message , sks writes

You'll probably find that

will answer all your questions [1]. Do you not consider it sensible to delve into such ramifications before laying out nearly quarter of a million pounds?

[1] The Vivisimo search engine is a good starting point for all research while it's still free. It's a parallel search facility that uses several search engines including Google. It's very fast, classifies results into groups in order of likely usefulness, eliminates most duplications, and tests links. Google alone is eschewed by professionals; it's quite useless and barely scratches the surface of the www compared with Vivisimo.

Since you are asking just about the most difficult VAT question you could have chosen you might find a little more information would narrow down the search:

Building = Private House for yourself? House for a lettings business? Existing Business such as a shop?

You = Developer? Home DIY enthusiast?

Oops! Didn't read the question, cancel "Existing Business such as a shop".

Not really. It was a good price, and the issue of VAT reg is not my decision to make. I just have to follow the rules.

It's a conversion from a run down uninhabitable 3 storey manor house to 3 apartments. There's 3 of us in the partnership. We'll be selling them off once complete.

In your other posting you say, "the issue of VAT reg is not my decision to make. I just have to follow the rules." That is unlikely to be the case, you haven't sold or planned to sell anything yet so I don't see how you can be forced to register. But it would (arguably) be helpful if you could recover VAT on the vast quantities of building materials and equipment you are about to purchase.

Capital Gains tax is another whopper of a tax you are heading towards which can be alleviated. You need a good local Chartered or Certified Accountant to advise you.

What happens if the partners fall out as partners so very often do?

Are you aware that you are within the CIS scheme and might therefore have to deduct taz from (eg) your Double Glazers otherwise you become liable for *their* tax?

And so on.

Walking into such a minefield without proper financial advice could cost you all your profits and more.

The profit will be subject to Income Tax (or Corporation Tax for a Limited Company), not CGT.

There's no suggestion one way or the other by the OP that this is a trading venture, surely it could just as easily be (or at the very least turn out to be) a one-off investment?

I disagree.

OP has stated :

"It's a conversion from a run down uninhabitable 3 storey manor house to 3 apartments. There's 3 of us in the partnership. We'll be selling them off once complete."

The last sentence is likely to be the clincher. There is no intention to rent them out, and thus create an investment.