Property VAT

Property transactions involve some of the most complex and expensive VAT rules in the system: a wrong option-to-tax decision or a failed TOGC can cost a significant share of the deal value. Our VAT specialists advise across development projects, property investment, commercial and residential letting and disposals — ideally before contracts are exchanged, when the planning options are still open.

Property VAT Expertise

Property VAT turns on classification: residential or commercial, new or existing, sale or letting, taxable or exempt. Each combination has different consequences for the VAT you charge and the input VAT you can recover — and elections such as the option to tax can change the answer permanently. We review the whole transaction, model the VAT cash flows and document the treatment so it withstands HMRC scrutiny.

Property Development VAT

- Zero-Rating for New Builds: zero-rating for new residential buildings and qualifying conversions, protecting full input tax recovery on the build - Option to Tax: whether and when to opt commercial property, balancing recovery against the effect on purchasers and tenants - Development Input Tax: maximising recovery on land, construction and professional costs - Construction Services: correct VAT treatment including the domestic reverse charge for construction - Land Transactions: VAT treatment of land purchases and sales - Mixed-Use Developments: apportionment across residential and commercial elements

Property Investment VAT

- Commercial Property Letting: option to tax decisions and their long-term consequences - Residential Letting: exempt, with planning needed to manage irrecoverable VAT on costs - Acquisitions: transfer of going concern analysis so VAT isn't charged unnecessarily - Disposals: capital goods scheme implications and clawback risk - Property Management: VAT treatment of management services and service charges

Option to Tax

Opting to tax lets you charge VAT on a commercial property and recover VAT on related costs — but it binds future transactions and can deter VAT-sensitive tenants and buyers. We handle option-to-tax analysis, HMRC notifications, revocation windows including the automatic revocation rules (such as the six-year rule for property no longer held), and the anti-avoidance provisions that can disapply an option.

Transfer of Going Concern (TOGC)

A qualifying TOGC takes a property sale outside the scope of VAT — often saving the buyer substantial VAT and SDLT on the VAT-inclusive price. The conditions are strict and time-sensitive (including option-to-tax notifications before completion), so we assess qualification early, coordinate with the lawyers and get the documentation right.

Capital Goods Scheme

The capital goods scheme adjusts input tax recovery over a 10-year period for certain property acquisitions and refurbishments. We identify when it applies, run the annual adjustments, and manage disposal and change-of-use calculations — because a forgotten CGS adjustment is a classic HMRC assessment.

What You Get With Acumon

• Pre-contract VAT reviews on purchases, sales and developments
• Option to tax strategy, notifications and revocations
• Transfer of going concern (TOGC) qualification and documentation
• Zero-rating and reduced-rate analysis for builds and conversions
• Capital goods scheme management and adjustments
• Domestic reverse charge compliance for construction services

Why Acumon for Property VAT?

• VAT specialists with extensive property VAT experience across development, investment and letting
• Many of Acumon's VAT specialists previously worked for HMRC
• Integrated property VAT, SDLT and wider tax advice from one team

Get a Fixed-Fee Quote

Tell us what you need and we'll come back within one business day with a clear scope and a fixed price — no hourly-rate surprises. Call 020 8567 3451 or use the form and we'll be in touch.