HM Revenue and Customs have changed the rules relating to the option to tax commercial properties. The most important change is that it is no longer possible to have separate VAT treatment for a building and the land on which it stands.
There are numerous other changes that apply including one which makes the term ‘Option to Tax’ the official one to use: it has always been common usage, but the strictly correct term was the ‘election to waive exemption from tax’.
For more information on VAT and property, see notice VAT 742A ,
Revised Rules for Option to Tax
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