A faith based not for profit organisation came to us with a property VAT issue had originally obtained zero rating on its building. However, they faced challenges to this as a result of them needing to use the property to generate income, within the 10 year change of use adjustment period.
This meant a potential VAT charge of £1.9million. We worked with them to understand exactly how they needed the building to help them generate the income and minimised the areas of the building to which the adjustment was applicable. Finally, and most importantly we helped them to organise the income generation activities utilising options provided by the VAT legislation to ensure that the change of use VAT charge was fully recoverable.
Result
Our help and advice avoided the organisation having an unexpected £1.9million VAT cost whilst enabling them to adopt their income generation plans.
The earlier you seek advice on the VAT status of any building project the better. Talk to us today.
