The process of opting to tax involves:
- Ìý
•ÌýÌýÌýÌý deciding to opt to tax
- Ìý
•ÌýÌýÌýÌý notifying HMRC of the decision to opt to tax
The decision to opt to tax
The decision to opt to tax should be recorded in writing, setting out what land or building(s) the decision relates to and the date the decision was made. If the property concerned has already been used to generate income that is exempt from VAT, it may be necessary to obtain permission to opt to tax from HMRC, a point which is covered under a separate heading below. It is appropriate to consider the impact of opting to tax on actual or prospective tenants or purchasers and whether any existing agreement to let or sell the property allows for VAT to be charged.
Notifying HMRC of the decision to opt to tax
Unless a real estate election is in place (see V4.110Z), each option to tax must be separately notified to HMRC, normally no later
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Web page updated on 21 Mar 2025 09:46