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9 08, 2021

What Your VAT Position is on Selling a Commercial Property

August 9th, 2021|Blog|0 Comments

FAQ

1. Is there a general exception with VAT on Commercial Property.

Commercial Property is a special case when it comes to VAT. The default position on the sale or lease of commercial property is that it will be exempt from VAT, but there are exceptions – for example where property owners have elected to pay VAT.

2. How do you notify HMRC of the requirement to charge VAT?

You must notify HMRC if you’re registered for VAT and intend to start charging.

3. Assuming a property owner has notified HMRC of the requirement to charge VAT on the property if a purchase is made for the property, how much will the tax be?

If you make a commercial property purchase, the tax will be 20% of the total purchase price.

4. Do you know of any commercial rents that are exempt from VAT?

There are 2 types of commercial rents that are exempt from VAT. First, rents for property used for car parking (parking lots). Second, rents for a property that are below 300 square meters and are not used for business.

5. Does the Commercial Estate Agent have any responsibility to ensure VAT is paid on commercial property?

An estate agent, as a general rule, would only be aware of the date the property was purchased and the name of the vendors. It would not be the agent’s responsibility to ensure the buyers paid for any VAT before completion of the sale.

6. Does the amount of VAT payable increase if a property is a sublet?

No, the VAT payable does not increase if a property is sublet. The VAT is added to the final price of the property.

7. What documentation is sent to HMRC when a decision is made to charge VAT on a property?

If you’re a property developer, you’ll need to provide a VAT return for the sales of your properties and you’ll need to pay the VAT due. At every point in the sales cycle, there will be documentation to send to the HMRC.

3 08, 2021

Selling Your Property in 2021

August 3rd, 2021|Blog|0 Comments

Selling Your Property in 20211. Get your facts straight

The more you know about the local area and properties in that area, the better. This will help you make informed decisions throughout the selling process. It’s important to […]

18 02, 2021

Hoxa Head – A Military Acquisition

February 18th, 2021|Blog|0 Comments

Orkney consists of 67 separate islands, the central administrative island being Kirkwood.

The islands are home to a number of historic UNESCO World Heritage sites. These include Iron Age relics and Knap of Howar on Papa Westray and dates back to the Neolithic period.

In 995AD the islands were originally besieged by the Norwegian King, Olaf Tryggvassal, but it was Thorfinn the Mighty ruled throughout the islands.

Along with his brothers and cousins, Thorfinn extended his empire across the sea from Dublin to Shetland. It was not until 1468 that Orkney was to come under Scottish rule.

Orkney became a strategic site in World War I for the Royal Navy’s Home Fleet. It was from here that the HMS Hampshire, after returning from the 1916 Battle of Jutland, went on mission with Lord Kitchener to Russia in in June 5th 1916.

During the mission the HMS Hampshire hit a German mine and claimed 737 lives, including that of Lord Kitchener.

The German High Fleet remained active in the Scapa Flow scuttling many vessels throughout the peace and wartime.

In 1939, World War II the Orcadians came under siege from the German submarine warfare sporadically. In the first month of warfare the Admiralty using aircraft carriers accompanied by destroyers, were the first to become casualties  of war. On 17th September 1939, HMS Courageous was hit by two torpedoes from a U-29 claiming the lives of 519.

The Orcadians were to suffer many such loses, including the loss of 834 of 1234 men and boys after the HMS Royal was torpedoed in March 1936. The video shows The Kriegsmarine’s U-47 Submarine Raid at Scapa Flow and Sinking of the Royal Oak (WW2).

The Orcadians became increasingly uneasy as the frequency attacks by the Luftwaffe on civilians and trawlers resulting in causalities, was to become more aggressive.

During World War I and II the Orkney civilians and military installations were to be protected by the Secretary of State for War.

Hoxa Head was strategic during World War I and II in guarding the Orkney Islands, looking out over the main approach to Scapa Flow protecting an important Royal Navy base. There is an array of coastal gun and searchlight emplacements, with batteries on the Floatta. It is considered as the biggest I & II world war sites in the UK.

Hoxa Head: The Scappa Flow Defences

During both world wars Scapa Flow was safe anchorage for the Royal Navy’s Home Fleet. The main entrances to the flow were heavily defended by booms and metal nets, mine fields and coastal gun batteries. This is part of the complex battery at Hoxa Head. The hillside is covered with concrete; two director towers, with their 6 inch gun houses, magazines and shelters; a fighting searchlight and three dispersed beam lights; several engine houses and lots of hut bases. The battery was designed to cover the Hoxa boom, anchored just north of the battery, with close range and rapid fire against the threat of MTBs.

The World War II Balfour Battery was located on Hoxa Head, South Ronaldsay, and included gun and searchlight emplacement

The Battery commanded the Sound of Hoxa, the southern approach into Scapa Flow.

But Now It's For Sale...

The Property Buyers are used to buying or offered properties that are quirky;

  • A stream
  • A Lake
  • A Grass Verge in a city centre
  • A pathway between two hills in the countryside
  • A Cafe situated in the middle of nowhere
  • A Pig Farm in Norfolk
  • Stables
  • Casino
  • Pubs and Bars
  • Clubs
  • Even a Farm between Motorway Lanes!

But never with a World War One and Two strategic military installations.

I mean…What would you do with it?

Tourism?…This is from TripAdvisor

Tour Guides from Germany – Fernwehmotive

Well we’ll start with an online auction…Quicksaleauctions.co.uk

What do you think?

12 04, 2019

February Purchase: Industrial Warehouse and Land

April 12th, 2019|Blog, Commercial, warehouse|0 Comments

Industrial Warehouse and Land

The property acquired was a warehouse in close to St Helens town centre. This commercial property is located within easy access to Manchester and Liverpool. The Industrial warehouse, previously used to house aquariums and pets, […]

28 03, 2017

Commercial Mortgage Rates for Buy to let Property 2017 to 2018

March 28th, 2017|Commercial|0 Comments

Evolution of the Buy-to-Let Market

Buying property is a relatively new phenomenon in the UK Prior to 1990 rental residential or commercial properties were dominated by the Government bodies. The private rental sector only began to emerge once the Government changed its housing […]