VAT on assignable property option agreement?
Discussion
Hi guys,
A quick bit of advice from any VAT experts if possible...?! I have spoken to my accountant who has given me an answer but said it's worth checking with a VAT consultant, which I will do, but if anyone here has a view that'd also be great.
I have a ltd company (non VAT registered) which has an option agreement to buy a residential property. I've gained planning consent to build a new house in the garden, so the property is now worth more than the agreed value of the option agreement. If I buy the property and sell it straight away I wouldn't have any issues with VAT, but how about if i sell the option agreement to someone - would that still be VAT exempt or as it's not the actual property but a contract would I have to register for VAT and charge it on the sale price of the option agreement?
Many thanks in advance!!
Dom
A quick bit of advice from any VAT experts if possible...?! I have spoken to my accountant who has given me an answer but said it's worth checking with a VAT consultant, which I will do, but if anyone here has a view that'd also be great.
I have a ltd company (non VAT registered) which has an option agreement to buy a residential property. I've gained planning consent to build a new house in the garden, so the property is now worth more than the agreed value of the option agreement. If I buy the property and sell it straight away I wouldn't have any issues with VAT, but how about if i sell the option agreement to someone - would that still be VAT exempt or as it's not the actual property but a contract would I have to register for VAT and charge it on the sale price of the option agreement?
Many thanks in advance!!
Dom
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