Specialist Service
Property VAT is one of the most technically demanding — and highest-value — areas of VAT. We bring Big 4 specialist real estate tax team experience directly to your transaction, at a fraction of big-firm cost.
Why Land & Property
Land and property doesn't behave like the rest of VAT.
Get it wrong on a single transaction and the cost runs to six or seven figures — and it usually cannot be undone after completion.
What We Advise On
From a single option to tax decision through to development structuring.
Whether to opt, notifying HMRC, and the disapplication rules.
Structuring sales as VAT-free transfers, and checking conditions before exchange.
Zero-rating on new dwellings, the 5% rate on conversions, and development structuring.
Tracking obligations, and modelling the effect of a sale or change of use.
Commercial leases, service charges, dilapidations, surrenders, and variations.
Representation where HMRC queries a transaction, an option, or a CGS calculation.
Option agreements, promotion agreements, and overage arrangements.
Relevant charitable purpose certificates, and construction for charities and schools.
How It Works
Property runs to tight timetables. Our process is built to answer quickly, without holding up exchange.
A short call or exchange of documents to understand the property, the parties, and what's being transacted — including title, lease, and option to tax history.
We work through the VAT position against the facts — exemption, standard-rating, zero-rating, TOGC conditions, and any Capital Goods Scheme history.
A clear written note setting out the VAT treatment, the risk areas, and the practical steps needed — in plain language your solicitor and accountant can act on.
Help with option to tax notifications, TOGC confirmations, and contract VAT clauses, so the position holds up in practice, not just on paper.
Questions
A starting point only.
No, the option is elective. Most commercial property is exempt by default, which blocks VAT recovery; opting makes your supplies standard-rated and restores it. Note that the freehold sale of a building under three years old is standard-rated regardless.
If the conditions are met, the sale falls outside the scope of VAT entirely. The buyer must be VAT-registered, must opt to tax and notify HMRC by the relevant date, and must confirm its option will not be disapplied.
Normally ten intervals from acquisition or completion. It applies where capital expenditure excluding VAT meets the threshold — £250,000 before 29 July 2026, rising to £600,000 on or after that date.
Often yes, through the DIY housebuilders scheme. The claim must be made within six months of completion for builds finished on or after 5 December 2023.
Insights
Detailed guides on the mechanics of property VAT.
The default exemption, compulsory standard-rating, zero-rated dwellings, the option to tax, TOGCs, and the Capital Goods Scheme — and how they combine on real transactions.
Detailed GuideEvery condition for treating a property purchase as a transfer of a going concern — the buyer's option-to-tax deadline, the deposit trap, and SDLT savings.
Free one-hour consultation. All engagements fixed-fee.