Call me back, please

Is There VAT On Sale Of Commercial Property?

Property Saviour » Commercial Property » Is There VAT On Sale Of Commercial Property?

When selling commercial property in the United Kingdom, it is important to determine whether Value Added Tax (VAT) applies. In most cases, the sale or lease of a commercial property is exempt from VAT. However, there are certain circumstances where VAT may be charged.

One situation where VAT may apply is if the property owner or developer has opted to tax it. Opting to tax means that the owner has chosen to charge VAT on the sale or lease of the property, even though it would typically be exempt. This is often done to enable the owner to reclaim VAT on costs associated with the property, such as construction or renovation expenses.

If an owner has opted to tax a property, they must charge VAT on the sale or lease of that property. For example, if a developer has opted to tax a newly constructed office building, they would charge VAT on the sale price to the buyer. The buyer, if they are a VAT-registered business, could then reclaim this VAT.

It’s important to note that once a property has been opted to tax, this cannot be easily reversed. The decision to opt to tax is generally irrevocable, although there are some limited circumstances where it may be possible to revoke the option to tax. This is a complex area, and professional advice should be sought.

If a property is not opted for tax, then the sale or lease will usually be exempt from VAT. This means that no VAT is charged on the transaction. However, it also means that the owner cannot reclaim any VAT on costs associated with the property.

There are some other situations where VAT may be charged on a commercial property transaction, even if the property is not opted for tax. For instance, if the sale is part of a transfer of a going concern (TOGC), where a business is sold as a complete operational entity, VAT may be chargeable. The rules around TOGCs are complex, and professional advice should be sought in such situations.

Table of Contents

How much is VAT when selling a property?

The basic rate of VAT is 20% when selling a commercial property.

Is there VAT on sale of commercial property
While the sale or lease of commercial property in the UK is typically exempt from VAT, there are circumstances where VAT may be charged.

Taking Control of Your Commercial Property Sale

When it comes to selling commercial property, many owners instinctively turn to traditional methods, such as engaging a commercial property agent. However, this approach often comes with its own set of challenges and delays that can frustrate sellers and prolong the process. If you’re looking for a more streamlined and efficient way to sell your commercial property, it’s worth considering the benefits of selling directly to Property Saviour.

One of the primary advantages of working with Property Saviour is the speed and certainty they offer. Unlike selling through an agent, which can involve a lengthy marketing process, property viewings, and negotiations with multiple potential buyers, Property Saviour can provide a quick, straightforward sale. They have the funds readily available to make a cash offer on your property, meaning you could have a sale agreed upon within a matter of days, rather than months.

In addition, selling to Property Saviour eliminates many of the common delays and uncertainties associated with traditional sales methods. You won’t need to worry about buyer financing falling through, long property chains, or last-minute changes of heart. Once you’ve agreed on a sale with Property Saviour, you can have confidence that the transaction will proceed smoothly and quickly, allowing you to move on with your business or investment plans.

Another benefit of selling to Property Saviour is the simplicity of the process. Selling a commercial property can be a complex undertaking, with numerous legal and regulatory requirements. When you sell through an agent, much of this complexity falls on your shoulders. However, Property Saviour has the expertise and resources to handle these matters efficiently, reducing the burden on you and ensuring a hassle-free sale.

Additionally, selling directly to Property Saviour can provide greater flexibility compared to traditional sales routes. They can work with you to structure a sale that meets your specific needs and timelines, whether that’s a quick sale to free up capital or a deferred completion to give you time to relocate your business. This level of flexibility can be particularly valuable if you’re facing time pressures or other constraints.

auction hammer

Property Saviour Price Promise

  • The price we’ll offer is the price that you will receive with no hidden deductions.
  • Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
  • These valuations or surveys result in delays and price reductions later on.
  • We are cash buyers.  There are no surveys.
  • We always provide proof of funds with every formal offer issued.

We'll Pay £1,500 Towards Your Legal Fees

  • No long exclusivity agreement to sign because we are the buyers.
  • You are welcome to use your own solicitor. 
  • If you don’t have one, we can ask our solicitors for recommendations.
  • We share our solicitor’s details and issue a Memorandum of Sale. 

Sell With Certainty & Speed

  • Our approach is transparent and ethical, which is why sellers trust us.
  • 100% Discretion guaranteed. 
  • If you have another buyer, you can put us in a contracts race to see who completes first.
  • Complete in 10 days or at a timescale that works for you.  You are in control.

Sell with certainty & speed

Share This Article:

Related Articles

Skip to content